Will an increase in interest rates crush the real estate market and is this why we are seeing a boost right now in buying of properties

[John Rubino]

I just started my own real estate company a few months ago. I work primarily with developers and builders providing them capital from our investors. One thing that concerns me is the governments potential push to raise interest rates. We are starting to see rates begin to crep up, but still extremely low given the average that rates have been over the last 15-20 years. It seems as rates begin to crep up more people are buying since they want to get a good rate now instead of a higher rate if they wait. My concern is if rates start to skyrocket what that will do for the buying of properties and for us quick turn sellers of properties. Will things shift to a more dominant rental market? Obviously being in a cash position would benefit more, but as the demand for rentals increase it seems the power will shift from selling to renting. Several of my friends seem to thi property management wil be the future for a real estate investor. I'm interested in hearing the thoughts from experts on the site.

Regards,
John Rubino
Managing Director and Founder
JID Investments, LLC