Source: GORKIE/PRIVATE MEDIA
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As rents and interest rates rise in lockstep, what happens to the rental market? You can imagine either outcome: landlords love the high rents and rent out more properties, or they fear the high-interest repayments and get out altogether.
Both are possible, of course, with indebted property owners getting out of the game while others with plenty of cash pay down their debts to stay in the market. Equally, some may be quietly pleased with high-interest repayments and their losses on rental properties because they can claim higher deductions from their income. They call this negative gearing.
The question of landlord profits is one we need to understand.
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