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The Property Podcast

ASK77: What if interest rates spike? PLUS: Is there a case for investing in retirement homes?

The Property Podcast

Rob Bence & Rob Dix

Investing, Education, Business News, News, Business

4.82K Ratings

🗓️ 21 February 2017

⏱️ 10 minutes

🧾️ Download transcript

Summary

Two more questions and answers

Transcript

Click on a timestamp to play from that location

0:00.0

Hello, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.

0:07.0

Hello everyone and welcome back to Ask Rob and Rob where you ask us questions and we give

0:14.8

you answers and believe it or not the former has not changed but the questions have you

0:18.7

be pleased to know and we've got some great questions in this week.

0:22.0

So if you've listed to the show for a while and you've had your own

0:24.6

questions you're probably thinking hmm how do I do that? Well in case we've never mentioned it before it's really easy and you've got more

0:30.6

than one way of doing it. Two in fact, first way is to call 013- 808 AAA-O-3-3-35.

0:37.0

That's 01-8-O-3-O-3-5 and leave us a voicemail.

0:41.0

Or you can leave us a voicemail via your computer instead by going to the

0:46.0

property hub dot net slash ask a sk that's what our first questioner did this

0:51.8

week he was too bashful to leave us his name but

0:53.8

thankfully he had a great question. Let's have a lesson.

0:56.0

Hi Rob and Rob, love the show by the way. I think it's really, really good.

0:59.7

I have a question about interest rates if you don't mind answering.

1:03.2

Now I know that when entering into a deal if you analyze the numbers and they all stack up

1:07.8

then you minimize the risk. However the only thing I can't control is interest rates.

1:12.4

I always stress test my potential deals up to the only

1:13.4

I can't control is interest rates. I always stress test my potential deals up to about 7 or 8

1:15.8

percent but if it went higher than this I wouldn't be able to sustain the

1:19.2

mortgage payments for very long.

1:21.7

Being 32 years of age I've never really known interest rates to be very high but I do

1:26.3

know that in the past interest rates have been as high as 15%. If I'm leveraged with

...

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