The US Federal Reserve is raising interest rates in a bid to slow down consumer demand. In Jun, they announced the biggest interest rates hike since 1994, and this is having a significant impact on the economy.
You probably are feeling it when you top up your car fuel. And as you’re looking at the losses on your growth stock portfolio.
But that’s not where it ends.
Rising rates will hurt property investors too, but there’re ways to play in a market of rising rates. That what we’ll explore in this article.
But first, let’s take a look at how rising interest rates will affect property investors.
Impact of rising rates on Property Investors 1) Lower CashflowIf you’re covering the utilities of your rental property, especially in the case of room rentals and service accommodations, you’ll feel the direct impact as your costs increases.
2) Return on Equity drops...