Interest Rates

Interest rates are the lifeline of our real estate world. Without the lenders and financial leverage, all investors would have to buy any investment properties in cash, completely removing the whole concept of leverage, ROI and yields from our business.

Real estate ownership is generally a long-term play, however, and an owner will see rates go up and down during the duration of asset holding. Managing the financial aspect of leverage (debt) can make the difference between winning and losing the game of returns.

Currently, the central banks have made the unfortunate decision of fighting inflation by penalizing the debtors and hence we have seen a massive push of rate hikes since last year. …[Read More]