Investing in real estate with interest rates going up?
I'm thinking about getting into real estate in my home country (Eastern Europe).
Just to give you a general overview of this market: inflation is sky high (not €) and interest rates have already started going up so it might be the last chance for me to get leverage at these rates.The issue is that I see interest rates going even higher in the future, which should at some point push down inflation (so far no success), which theoretically would mean that:
Rental cash flows will come down or at least stay the same since rent correlates with inflation
Discount rate will go up since interest rates will go up.
These two points would mean that the value of real estate will go down.