Another good reason to buy a small permanent Management Rights Business rather than just staying put in your home.

Many home owners during the past months of re-occuring interest rate hikes have despaired at the rising cost of servicing their mortgage.  Some have even put off the purchase of a Management Rights business because of their concerns that interest rates may continue to rise.

This is the exact opposite of what they should have done (or should be doing).

Interest rate rises are a direct result of inflationary pressures in our economy. In Management Rights, to some extent you have refuge.

Rather than having a home mortgage where every rates rise hurts, at least if you own a Management Rights business -                            1) Your caretaking income is adjusted for inflation,     and 2) and so is the income from your permanent letting pool.

As inflation takes hold rental values increase and as returns to the unit owners increase and compensate for rising interest rates, the resident manager's commissions also increase.

So what happens when interest rates start to drop?

In South-East Queensland you really don't have much to worry about.     Demand for accommodation is high as a result of us being in the fastest growing population area in the Country.

When inflation again starts to be controlled and interest rates begin to decline, continuing demand pressures will keep rents stable even though they may not rise as they have done during this past year of interest rate rises. This of course means that as your borrowing costs start to decline again, your income from the letting pool will at least remain stable.

Another good reason to buy a permanent management rights business.