A lot of people buy property when interest rates go right down. For example, two years ago there were a lot of people buying property because interest rates were extremely low. And of course, it makes logical sense. Everyone goes out and buys when this happens, which generates a higher demand in the market. But who would not want to buy property if you can lock in interest rates and borrow at 5% for five years?
But for me, I prefer not to rush. Sometimes, I choose to sit back and wait when the market is hot. I’ve learnt that sometimes being patient with your money is a virtue. You don’t have to buy something every year. It might be better to save up for 10 years, and then come and pounce when not as many people are in the market.
Sometimes when the rate goes up to 9% and no one can afford to buy. So, I’d actually rather buy then and have enough money. That way I don’t have to worry about having a big debt or fighting with other investors. You don’t want to be in so much debt when rates go up again.
I don’t want to buy when there are 100 people going to auction against me. I’d rather buy when there are not a lot of buyers.
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