The days of easy money are a distant memory, real estate investors affected by higher interest rates may have to adjust behaviours in order to maintain a positive cash flow—or at least break even during this difficult time.

If you're wondering how to manage your investment property(ies) as interest rates increase, we've got a few tips for you from an article released by moneywise.ca and also shared in the Financial Post.

The Long Game

Remember that real estate is a long game. Many investors and developers hold properties for years and years.

If you look back at real estate prices, decade over decade, the prices have continually increased. While we may see a dip in the market now and then, the consistency is in the long-term. 

Put Your Investment in Perspective

The faster an investment moves, the closer you need to monitor it. Think NFTs and cryptocurrency. However, in the real estate market, anywhere in the world, it was cheaper to buy a home 50 years ago than it is today.

Two things matter in real estate investment: positive cash flow and appreciation. If the you aren’t over-leveraged by too much debt, we recommend maintaining a long-term outlook and not get spooked by interest rate hikes.

Put Your Investment in Perspective

The faster an investment moves, the closer you need to monitor it. Think NFTs and cryptocurrency. However, in the real estate market, anywhere in the world, it was cheaper to buy a home 50 years ago than it is today.

Two things matter in real estate investment: positive cash flow and appreciation. If the you aren’t over-leveraged by too much debt, we recommend maintaining a long-term outlook and not get spooked by interest rate hikes.

Take Control of the Situation

If expenses are truly unmanageable, consider consolidating debts with a loan, such as the possibility of taking out a second mortgage or home equity line of credit (HELOC).

Know When to Sell

While all experts will advise against selling, you have to do what’s best for you.

If you are significantly underwater and it’s not only impacting your quality of life and there are no options to re-amortize or consolidate debt, and you can’t afford to make payments and it’s impacting your quality of life, and if the property also has upcoming expenses, then it’s probably time to let it go.