There seems to be a growing consensus that rising interest rates and/or inflation are on the horizon. I am wondering what individuals of modest means can do to protect themselves from the resulting reduction in their purchasing power and net worth.
Historically, loading up on long term low interest mortgage debt has been a successful strategy; however, the current real estate market is being propped up by low interest rates which could rapidly change affordability. For those who can purchase for cash and don't mind being landlords, income property seems like a good bet. For the rest of us, I don't have a clue.
Any thoughts?
Historically, loading up on long term low interest mortgage debt has been a successful strategy; however, the current real estate market is being propped up by low interest rates which could rapidly change affordability. For those who can purchase for cash and don't mind being landlords, income property seems like a good bet. For the rest of us, I don't have a clue.
Any thoughts?