Interest Rise Good News for Landlords?

Saturday 7 February 2004

Landlords should probably be applauding Reserve Bank Governor Alan Bollard's recent interest rate rise.

By The Landlord

Not that he expects it. Far from it. Central bankers "have been likened to dismal souls that take away the punch bowl just when the party is getting boisterous", he said in a recent speech.

And at first glance, owners of rental properties are probably angry.

The rise in the official cash rate will push up mortgage interest rates. That, in turn, will put downward pressure on house prices, which become less attractive if they are more expensive to finance.

But both of those trends may actually help landlords.

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