Fed Raises Rate Once Again
How Does That Impact Your Real Estate Investments?
Just this week the Fed raised the Federal Funds Rate yet again by .75% to a current 4% interest rate. Keep in mind just a year ago the same rate was a quarter of one point (.25%). Scary, while necessary, the fed has expressed their plans to continue the same course to battle inflation in the coming months.
With interest rates bringing down all sectors of the market, in Today’s Video, I want to address the question of, do interest rates directly impact investment property values? Additionally, how does every ½ percent increase in interest rates impact your net positive cash-flow when analyzing a deal.
There is no doubt that interest rates will continue to increase as the Fed tries to reign in inflation. The real question is, when the dust settles, where will apartment values be in the end?
The bottom line for multi-family investors is this shift we are experiencing impacts landlords of all sizes whether you look to purchase, sell, or hold investment real estate. Watch now and prepare yourself for the days ahead.