Should I Wait Until Interest Rates Drop to Invest?

It is recommended that you invest in a property you can afford, with interest rates currently rising, it may be more financially smart to calculate your monthly repayments with an extra amount as a buffer for times where interest rates may rise. In addition to monthly repayment buffers, having buffer savings will also prepare you best for the worst (if it was to come).

The property market is unpredictable, so waiting for a drop in interest rates may be more out of reach that you may think. It also may be worth investing now while your earning potential is high and having a greater range of investment properties to choose from.


If interest rates are a major consideration for you, think about what you can do to shave off the interest that may accrue over time.

In some circumstances, you may only be required to provide a 5% deposit on a property. That means you will be borrowing a larger amount to acquire your property. Consider saving a larger deposit to reduce the amount you need to borrow - saving an extra $10-20,000 can reduce the amount of interest accrued overtime on what you owe to the bank.

Take it as this, the more you borrow, the longer it takes you to pay it back and therefore, the more interest you may accrue over time.

This is another question to ask yourself prior to investing in a property - with interest rates rising or not.

Are you looking to make a career change in the future?

Being able to make your regular monthly repayments comes with a stable income. If you are looking to change your career sometime soon, put off buying an investment property until you can prove you have a consistent, stable income from your new job.