I have been through several cycles already in my property career. I remember vividly 1994 and more the 1980s. Actually I should say I was shocked. I believe anything can and will happen. No one expected interest rates to jump to such highs. Those with variable interest rates are most at risk. Mark Carney, governor of the Bank of England, suggested in a speech last night that an interest rate rise is likely around the turn of the year.
It all depends on what type of investor you are and how much risk and leverage you take on. I would say prudence should take precedence over profits. Inflation might be on the horizon along with interest rate rises. Owning real estate is a hedge for inflation….
We have had a great run the last couple years, how do you suggest the potential interest rate rise?
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