Will your property investment strategy change as interest rates tick higher?

[Longterminvestor]

Even though the rate of increase in worldwide interest rates will be relatively slow during 2018, with the US likely to increase interest rates the fastest, will your property investment strategy change as rates tick higher?

 

[diyhelp]

At some point yes, but in the short to medium term interest rates are unlikely to race ahead so not much change in investment strategies in the short to medium term.

 

[nmb]

At some point it will need to change but interest rates will take years to get back to anywhere near "traditional" levels.

 

[Longterminvestor]

I also believe that so-called “traditional” interest rate levels are still a long way off although gradually investors will need to review their strategies going forward. We have now grown accustomed to the low interest rate environment and it will be difficult for many people to let go.

 

[kchiggs]

TO me this seems like perfect opportunity to try and take out fixed-rate purchase options or mortgages. As well as have some liquidity on hand. That way can lock in historical low rates and at the same time take advantage at each incremental rise that puts people who think rates will never go up and have maxed out in a distressed position

 

[lookinginvest]

I totally agree, for the savvy investor looking forward there are opportunities aplenty to tap into the current supply of cheap finance. Far too many people are assuming that interest rates will stay at this level for many years to come. They will eventually start to tick higher and as the cost of living continues to rise those who overstretch their finances to buy their dream home will be placed in a very “distressing” situation. Distressed sellers will put pressure on house prices so for the foreseeable future property investors could be in a perfect position to take advantage.