investing in real estate considering interest rate increase

[Pavan Kovvuri]

Hi folks,

As there's a proposal from Fed to increase the interest rate 4 times in 2022, what is your take on real estate investing? If you have the capital for downpayment and you have +ve cash flow, would you continue to invest while the interest rates are relatively low or would you wait for the real estate prices to drop when after all the interest rate hikes are completed (expected later this year)?

If anyone had a similar experience before, please share an example.

I assume this is one of the burning questions for many investors. I hope many such people benefit from this discussion.

Thank you

[Barry Ruby]

@Joe Norman I’m a serious developer that saw interest rates go from 7 to 18% in the early 1980’s. At that same time I was building a 36 story mixed use project in downtown Seattle.

The impact all but destroyed the real estate market and caused drastic reduction in all asset classes.

NEVER SAY NEVER

Hope for the best plan for the worst