Interest rates will slowly creep up but housing prices should stay strong.

In the last edition of Better Living I mentioned interest rates would probably rise, but residential property prices would continue to grow.

Now I am here to report that most economists expect a rate rise either in April or May and the big banks are forecasting a rise between .25 and .75 basis points by the end of the year. This means we should see mortgages close to 7.5% by the end of 2010. But don’t despair. I believe property will continue to deliver strong growth and will prove to be the good investment it has been renowned for over recent decades. Now is time to either upgrade your current address or with rents at an all time high with no sign of decline, it may be a great time to get excited about an investment property and or increase your property portfolio.

In a rising market such as we are experiencing, it is never wise for people to over extend themselves as this can be a recipe for disaster on many levels.

At Chapman Real Estate we know what is happening in your area and we are very happy to help you.

Contact your nearest office.

‘Taking Care of You and the mountains’