, suggests these strategies to help you navigate this period of high interest rates.Hopefully, during the lower interest rate period you have been able to accumulate cash savings in an offset account. “If you need to eat into your savings to help you through, then do so as that’s exactly what savings are for,” he says.
“If you don’t think you can service your existing debt if interest rates were to remain at 6.5 per cent per annum for a long period of time, then it might be a sign you have over-borrowed,” says Wemyss. “If so, you must face this truth, no matter how difficult it might be. You must formulate a plan to reduce your debt levels. This might include selling property. You are better to do it now than risk hanging on too long. If you find yourself digging a hole, stop digging.
Hopefully, these strategies can help property investors navigate higher rates without having to give up on quality properties. Those who can keep their investment portfolio together stand to reap strong rewards when interest rates ease and market conditions improve.