High interest rates benefit investors

What happens if rates go up? In today's low-interest-rate environment, one of the common questions property investors ask is, "What happens if I buy now and interest rates skyrocket, like they did in the 1980s?"

It's an understandable concern. Today's historically low interest rates can't be sustained forever because at some point the economy will begin recovering, inflation will grow and rates will rise.

That's part and parcel of the economy's cyclical nature. When rates do rise, it's doubtful they will hit the dizzying heights of the late 1980s. The major lenders certainly don't think so; they're setting their 10year fixed rates about 7per cent. With vast resources and access to the world's top economic minds, it's highly unlikely that major lenders will make the wrong call about the future direction of interest rates. But let's say for argument's sake that they do and rates climb back to the heady levels of 20 years ago. If interest rates go up that far, it's a sign that business and consumer confidence is high. When rates go up, so does inflation. And when inflation rises, so do property values. Yes, your holding costs will be higher because of higher interest rates but as an investor you will benefit on three fronts.

Read more online...

Coco Apartments

Apartment Superstore presents another choice development - Coco Apartments. Located at 266 High Street, Prahran, on the doorstep of the local café scene, these apartments are just what the doctor ordered for all the right reasons.

Apartments start at $390,000.

Find out more about Coco Apartments

We want to contribute to the economic recovery

When everyone is talking about downsizing and sacking valuable employees, Apartment Superstore is expanding and needs good people. We represent more than 30 quality developments and are Australia’s fastest growing and most innovative property group.

If you know someone looking for a challenging career opportunity, please bring this article to their attention. You might just be doing them a big favour.

Find out more about careers at Apartment Superstore

Have you joined the Circle yet?

Introducing Apartment Superstore’s Private Sales Division

Les Pamensky lives and breathes Real Estate with over 25 years of experience. He knows exactly how to get a result when faced with selling an individual apartment. To say he is unique is an understatement.

Les’s top property pick for this month.

Alto on the Boulevard - 594 St Kilda Road, Melbourne

Hallelujah! We did it. Or should we say Rhonda Reid and her team did. Imagine finding good tenants for every one of the multiple new apartments at Alto on the Boulevard in just 4 weeks. The definition of true happiness is owning an investment property occupied by a quality tenant with no headaches. Call Rhonda to discover how she does it.