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Are increasing interest rates bad for property?

Friday Aug 6, 2010

Are increasing interest rates bad for property?

This is not a straightforward question.  Many people only think about the bad aspect of interest rates; the increase in monthly payments.  Capital growth can actually be strong in a period of rising interest rates due to improved economic conditions.  Of course, there will be a crossover point whereby the level of interest rates will impact negatively on capital growth.

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Are increasing interest rates bad for property?

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