WARNING: Rate Hikes Impact EVERYONE - Renters Beware! 🚨 Find Out Why Even Mortgaged Homeowners Are at Risk! 💸💥
WARNING: Rate Hikes Impact EVERYONE - Renters Beware! 🚨 Find Out Why Even Mortgaged Homeowners Are at Risk! 💸💥
All right. Today, I want to talk to you about rate hikes. Now, a lot of times people think that when there is a rate hike, it shouldn't affect them because they're locked into a mortgage. Now, what ends up happening is that even renters, if you live downtown Toronto, you might have heard about the rent strike going on in the two buildings.
Now, the reality is that when there is a rate hike cost of ownership in real estate goes higher. And with the increase, sometimes landlords must get more money to be able to cover the extreme cost. Now, a lot of times people say, Hey, well, what am I supposed to do? Now there is alternatives. You could always move further away from the city.
The further you move, the cheaper it gets, You know, sort of the drive to you can afford it. And I'm not saying that's necessarily a good option or only option. But at the same time, you've got to kind of tread lightly as well, because the alternative here is that the landlords will sell the investment property and probably since there is a low inventory, the person buying the unit will now be someone who's looking to purchase.
Therefore, as the renter, you are going to get bumped as well. So now you went from paying a rate you do not like to having to find a new place anyways. And I'm not saying that's the right thing or the wrong thing, but the point is rate increases affects everyone, including the investor. Sometimes having a conversation with each other, trying to figure out something that is mutually beneficial may be the better answer than to trying to fight each other.
I'm just talking about collaboration, overseeing each other as an enemy.
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