Do Interest Rates Affect Rents?
If you are a renter, don't kid yourself - higher interest rates affect you too! This is because as rates continue to go up, home ownership and paying a mortgage becomes more difficult. Potential buyers stay as renters, driving up demand and rental pricing.
Rents are up significantly in every major city as a result - Calgary might be leading this with rents for:
1 Beds: Up 34% YoY
2 Beds: Up 30% YoY
3 Beds: Up 42% YoY
This is why I prefer to invest in pre-construction properties that close in several years - it gives time for interest rates to come back down (and they will) and for rents to continue to increase, which improves your cash flow into a profitable position. Calgary is the only major city where you can make this work.
Contact me today to discuss my real estate investment strategy in this high-interest rate environment.