Why rising interest rates create the best property buying opportunities
Higher interest rates may deter many buyers, but history shows they often create less competition, stronger negotiating power and some of the most favourable conditions for savvy property investors.
Rising interest rates need not be a deterrent to investing in property. (Image source: Summit Art Creations/Shutterstock.com)
The past 50 years have shown that the economy and real estate market are intrinsically linked and tend to follow a fairly predictable journey.
Periods of an upbeat economy are followed by periods of sluggishness, and sometimes even recession.
Interest rates follow a similar path. When the economy is strong, there is always the risk of inflation, so the Reserve Bank raises interest rates to slow it down and maintain rates within a target 2 to …
