How does the US Federal Reserve interest rate cut affect property investors?


In September 2019, Germaine was interviewed on  Channel News Asia (CNA) in regards to the most recent interest rate cuts by the US Federal Reserve; and how they impact property investors. 

You can view the full video by CNA here

Developments that currently have high vacancies will see a surge in such vacancies. It is therefore important for investors to only buy places that are in demand, in high growth areas, and with positive cash flow. Holding power is vital at this point and investors are encouraged to wait until the market stabilises – also when prices increase.

This is good news for aspiring investors. If you are ready to buy in, this is a good window of opportunity especially with the lower interest rates. Such rates will help in increasing the positive cashflow when the unit is rented out (after deducting expenses) as this means paying a lower mortgage per month.