Cashing in on interest rates

Talk of New Zealand’s overheated property market and, in particular, Auckland’s housing crisis – along with impending regulatory measures – currently dominates all discussion of property.

For investors, the silver lining in all of this is that historically low interest rates mean there are numerous opportunities out there.

In the June issue of NZ Property Investor magazine, our journalist set out to discover what strategies investors can employ to take advantage of the lowest interest rates New Zealand has ever seen.

She spoke to investors, mortgage advisors and economists to find out what uses low rates are being put to and what the forecast might be for the lending environment.

Based on this investigation, some of the strategies she explores and discusses in the article include:

• Using cheaper leveraging to expand a portfolio.

• Using debt to develop existing properties and increase cash flow.

• Making the most of cheaper rates to pay down more debt and increase equity.

• Paying slightly more to lock in lower rates for longer.

To read more details about the hows and whys of using these strategies, click here to get the digital issue of NZ Property Investor magazine.

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