Fri, 2008-03-28 18:09 — Guest
Interest rates information and resources
Interest rates are almost always on the move. Either up or down. When rates increase the popular media generally devote a lot of space to the fact and issue reports of the detrimental effect rising interest rates are causing.
Rising interest rates for others could be a windfall. For example, an investor might negotiate a bargin purchase price for an investment property, provided a vendor is motivated to sell due to encountering affordability problems as a result of increasing home loan interest rates.
Rental income for property investors often increases when interest rates rise because many renters are less inclined to enter the property market due to the additional costs from higher home loan interest rates. As a result renters will often accept rent increases rather than entering the property market themselves. This can further incentivate property investors within the market place to increase leverage and aquire additional investment properties.