With uncertainty surrounding interest rates and where they could be heading, Michelle Coleman from Investors Direct was recently asked the following question from Jo-Anne, a reader of their newsletter;

My question is to do with gauging the impact of interest rate rises on my property portfolio. Specifically, I am wondering if property investment continues to be a sound investment where interest rates get close to the capital growth rate?

Read on to find out the answer...

There is no doubt that 2007 marked a watershed for Australian property and the economy. After years of steady and sometimes spectacular growth, the US sub-prime crisis of mid 2007 has had a profound impact on the world's financial markets and the future of the Australian housing market.

But what does it all mean for investors?

The process of obtaining development finance is very different to obtaining finance for a buy and hold investment. Finance Strategist Michelle Coleman explains the difference.