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Updated over 6 years ago,
Rising interest rates and implications on rents
With interest rates rising long term, is it good for rental property owners? Given that the rates are heading higher it would be even more tougher for the tenants to qualify for a loan and buy. Hence potential pool of tenants might increase causing more demand for rental property and hence rents would increase correct?
On the flip side, qualifying for conventional loan would get tougher with rising rates and cash flowing might be tough if rents doesn't rise enough to negate the increase in interest rates.
Want to know what others are thinking.
Thanks,
Steve