So ive been thinking,
if you were going to buy a el cheapo property with cash, and its safe to assume that there are going to be 1-2 more rate rises this year?
what would be the best strategy to take this assumption (assuming its true just for arguments sake) in terms of buying a property.
so after a few rate rises, the average joe may be struggling to pay their mortgage so expected prices and transactional prices may drop, so you have the option to attempt to negotiatie a better price now since you do feel that you could buy it cheaper later?
also, a few rate rises will see the average repayment on mortgqages go up so any FHB looking to get in the market will more liekly to rent thus creating a lower vacancy rate and possibly pushing up rents slightly, so I guess you could look for a fairly low yielding but high CG with the expectation of raising the rents later.
any suggestions or approaches ? I just feel that there is a better way since if interest rate rises, your term deposits should raise, and if you have an average/poor yielding property and you ve paid it all off, then you are losing out in terms of opportunyti cost.
sorry for the long babble
if you were going to buy a el cheapo property with cash, and its safe to assume that there are going to be 1-2 more rate rises this year?
what would be the best strategy to take this assumption (assuming its true just for arguments sake) in terms of buying a property.
so after a few rate rises, the average joe may be struggling to pay their mortgage so expected prices and transactional prices may drop, so you have the option to attempt to negotiatie a better price now since you do feel that you could buy it cheaper later?
also, a few rate rises will see the average repayment on mortgqages go up so any FHB looking to get in the market will more liekly to rent thus creating a lower vacancy rate and possibly pushing up rents slightly, so I guess you could look for a fairly low yielding but high CG with the expectation of raising the rents later.
any suggestions or approaches ? I just feel that there is a better way since if interest rate rises, your term deposits should raise, and if you have an average/poor yielding property and you ve paid it all off, then you are losing out in terms of opportunyti cost.
sorry for the long babble