The Relationship Between Interest Rates & Property

We discuss the significant impact of interest rates on the real estate market. When interest rates increase, markets tend to contract, but our model has been to consistently develop every year regardless of market conditions. It's important to buy the right property in the right location and develop the appropriate product for the target market to be successful. Higher interest rates can significantly impact those on fixed salaries, making it prudent to consider fixing your mortgage rate. However, rising interest rates also tend to bolster the rental market, as we've seen in our portfolio with no available residential properties and a queue of people seeking to rent. We believe that when interest rates eventually decrease, it will free up cash and increase the appetite for acquisitions.