What the Interest Rate Cut Means for Tenants’
What the Interest Rate Cut Means for Tenants’
As you may know, the mortgage interest rate was cut by 25 points to 11.5% on September 19th. What does this mean to us?
Firstly, the effect I like most is the positive mood the rate cut brought to the economy, especially the property market. Most estate agents now report a higher demand for property, which means capital growth will improve.
Capital Growth is the “oxygen” of the Wealth Mastery System. It’s the tax-free money we regularly withdraw to buy more houses or simply enjoy life with!
If you want to know how we “withdraw” capital growth on a house and why it’s tax-free, don’t miss my next seminar nearest to you!
TENANTS AND INTEREST RATES
Lastly, you might wonder what tenants have to do with the interest rates.
The rent is always supposed to cover the interest payable on your bond. If you’re using our property managers and lease agreements, you will be able to increase the rent every time the interest rate goes up. However, the same lease agreement says the rent should also go down when the rate goes down.
So, DON’T FORGET TO MAKE YOUR TENANTS HAPPY!
Regards,
Coert