By now, everybody knows it’s a great time to buy or sell a duplex.
That’s because interest rates are low and rents are high.
But what happens if interest rates rise even 1 percent, as they have over the last year?
Rates would still be very good. However, it’s important to remember one percent is the equivalent of several thousand dollars a year.
For example, on a $300,000 mortgage, payments would be $3000 higher for every year of the loan.
And for many duplex buyers, that amount is the difference between either an acceptable return on their investment, or affordability.
For duplex sellers, that means there may be less demand for their properties; for no other reason than people can no longer afford it.