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Deciding Between Cash Flow and Appreciation in Rising Interest Rate Markets

In the current economic climate, where interest rates are climbing, real estate investors are weighing two key strategies: cash flow or appreciation.

High cash flow properties may seem lucrative but can bring added complexities such as increased maintenance and tenant turnover rates. Meanwhile, appreciation, a subtler path, offers gradual but consistent wealth build-up, often with favorable tax considerations.

However, properties in the lower-income bracket, while promising on the outset, may not always live up to expectations due to various market dynamics.

For those who have the luxury to play the long game, banking on appreciation can be a powerful strategy, capitalizing on the market’s organic growth.

Whether you’re fine-tuning an existing portfolio or just starting out, making informed decisions is fundamental to successful investing.

If you’re seeking a strategy that stands resilient against economic shifts, contact Hamel Real Estate. We’re here to develop a thoughtfully tailored plan for your investment needs.