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Tey Yong Qing - Prices & High Interest Rates Impact Real Estate Investments

Tey Yong Qing says High-interest rates increase the interest rate on loans incurred by real estate investors and developers. These disrupt their cash flow, leading to low share price growth

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Tey Yong Qing - Prices & High Interest Rates Impact Real Estate Investments

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  1. PRICES & HIGH INTEREST RATES IMPACT REAL ESTATE INVESTMENTS? T E Y Y O N G Q I N G

  2. During the period of economic expansion, when there are rises in interest rates, various asset classes react uniquely to this. Price and high-interest rates diminishing the principal of bonds, affect the value of stock and other financial assets. It also influences interest payment on the debt.

  3. When it comes to real estate the use of MLM ( multi-level marketing) concepts has been considered by real estate agencies. MLM involves selling products to family and friends and training other people to do so.

  4. REAL ESTATE PRICE DIDN'T JUST GO HIGH OUT OF THE BLUR, SOME FACTORS CONTRIBUTE TO THE HIGH- INTEREST RATE LIKE, Infrastructure development Economics situation Changes in policy Availabilities of amenities Local development

  5. INCREASE IN COST OF CONSTRUCTION An increase in construction costs due to inflation often has an impact on real estate investment. The rise in wages, land cost, machinery, and building materials increases the cost of building

  6. INCOME-GENERATING ASSES Investors tend to search for assets that generate above and beyond the inflation rate. This increases the price of purchasing real estate.

  7. THE RENT COLLECTED FROM THE TENANT IS ALSO USED TO PAY FOR THE HOUSE MORTGAGE, OPERATING EXPENSES, PROPERTY TAXES, AND WORKER'S SALARY.

  8. INCREASE IN RENT The cost of renting a house has also increased due to an increase in building materials, wages, and development. Real estate needs to make profits from their investment and the high cost of all developer materials. To achieve this, they increase the rent.

  9. REAL ESTATE LIMITATION LIMITED AMOUNT OF PROPERTY COMPARED TO FIAT CURRENCY DURING INFLATION IS ANOTHER REASON REAL ESTATE PRICES RISE. REAL ESTATE PRICES ALSO RISE AS THE MONEY SUPPLY INCREASES DUE TO AN INCREASE IN AMOUNTS OF MONEY PRINTING.

  10. HIGHER MORTGAGE RATE A mortgage rate is the interest rate paid to a lender in exchange for lending money to purchase a property. The mortgage rate can be a specific interest rate or fluctuates based on the agreement between the lender and the buyer. As inflation increases, so do interest rates. The central banks also raise short-term rates to put downward pressure on the inflationary environment as inflation goes up.

  11. OVERALL, THE ABOVE POINT IS THE IMPACT A HIGH-INTEREST RATE CAN HAVE ON REAL ESTATE INVESTMENT. THOSE POINTS ARE GIVEN BY TEY YONG QING WITH A DECADE OF PROPERTY MANAGEMENT AND LEASING. TEY YONG QING

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