What do you think?

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From: Peter Davidson


Any chance of house prices dropping off with the news of interest rates going up 50-100 points over the next 6 months or so? What would you do, buy now or wait given the right opportunity didn't come by?

 

[Steve Navra]

Reply: 1
From: Steve Navra


Hi Peter,

Opportunity presents itself, irrespective of interest rate levels.

It is agreed that fluctuations in interest rate cause high / low market sentiment because of general buyers affordability, but in reality these are only the extremes of what one can buy / sell the properties for.

Please refer to the previous posting "Valuing per Rental Reality"

The point is that the actual value based on what TENANTS can afford, is hardly effected by interest rate movements and as long as one stays within these bounds, good buying opportunities are available whatever happens to the interest rate level.

Regards,

Steve