Rising interest rates are reshaping real estate investment. Savvy investors should: prioritize cash-flowing properties, diversify across property types and locations, explore alternative financing options, and secure fixed-rate loans. Consider short-term rentals to capitalize on rental demand, focus on value-add properties for inflation protection, and align with market cycles. While higher rates create challenges, they also reduce competition and create opportunities for investors with strong cash reserves and creative financing solutions.
Many real estate investors have an agecutoff. They prefer a certain “vintage” of property, and will avoid buying anythingolder than a certain year. Sometimes these rules are built into their strategies.Developers focus on new developments unless they can add significant value throughrepositioning. Public and private real estate investment trusts (REITs) willhave investment mandates that restricts them from purchasing properties olderthan, say, the 2000s.
