High interest rates can be a golden buying opportunity!!!

There are a few reasons why it can be beneficial to acquire real estate when the interest rates are trending high, in a market that is perceived as "shitty":

• Monthly payments and holding costs: Your monthly mortgage payments factor in both the buying price (Principle) and the Interest Rates. In most scenarios, as the interest rates go up, real estate prices go down. Hence, the effective monthly payments remain roughly the same.

• Interest rates are cyclical: Interest rates have a tendency to up and down over a period of few years. Your goal should be to acquire real estate at relatively lower costs, i.e. lower principle on your mortgage. Lower principle is better than lower interest rates because you can always re-finance when the interest rates go down but the principle is what it is.

• Competition: The good thing about buying when the interest rates are higher is that there is less competition in the market and you can acquire the highly desired real estate you want without having to get into bidding wars.

• Long-term appreciation:  Real estate has the potential to appreciate in value over the long term, especially if the property is well-maintained and located in a desirable area. This means that even if the market is perceived as "shitty" in the short term, the property may still increase in value over the long term.