Fed Rate Hikes: the Essential Guide for Property Investors

Property prices are affected by higher interest rates: how and what to do when the rates are raised are the questions answered by George Kachmazov, investment expert and managing partner of Tranio, an overseas property broker, in this article.

Now that America’s Federal Reserve has raised the interest rate, and the UK ponders the idea, real estate runs the risk of reduced value – a traditional side effect. This article demonstrates some little known aspects of property value gain during market corrections and shows how to split investment portfolio risks guarantee short and long term profit.

"Interest hikes are expected in the US and the UK in 2016, and considering the uncertainty on global markets, capital outflow will continue, making it essential for investors to understand where the long-term value lies."

George Kachmazov, managing partner and real estate expert at Tranio

Key points

  • higher interest rates reduce property value
  • low-yield property earns more over long-term
  • real estate prices rise faster than inflation
  • diversified investment portfolios most profitable

Property won’t escape the readjustment, neither will investors who put their money before their research – but it doesn’t have to. It’s possible to survive and thrive during market corrections, it’s just a question of common sense and a little help from the experts.

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