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Commercial Property News / News of the Money-World #50

NZ Everyday Investor

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Commercial Property Market

Interest rates are higher. So therefore people are expecting a safe return. And we're seeing right across every single asset class, right? That's kind of why it's the perfect financial stormers were describing it. I hadn't realised just how bad the commercial property market was. The big difference in the commercial space, my understanding and I might be wrong here versus the residential mortgages is that you can only borrow 60% LVR or 65% LVR on 15 year loan term. But maybe they know something that we don't, which is that it's quite sensitive to interest rates relative to residential.

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