Griz – I think the only questions re interest rates are when will they go up, not if they will go up. The US cannot sustain the downward pressure on the $USD. Their current account deficit is massive. They export way more than they import – and its increasing. As a result they must sell more $USD (than others buy ) to pay for the imports. They also are running a massive budget deficit ( war is really expensive ). All of this puts huge pressure on their $. The only way to sustain it will be to raise interest rates – and ours will follow. I bet ( but what do I know ) that we will see 7%-9% within five years.
All this being said, what I have been doing is only renewing 1 year mortgage terms. Each year I grind the shit out of the bank for the best 1 year rate. They will negotiate quite a lot for a one year term.I haven’t paid more than 3.25% for the last three years. I haven’t paid more than 1.5% less than their best posted rate for the last four years. I’ve saved at least 1.5-2% each year for the last three. When the rates begin to climb – at a clip of greater that 1.5 % a year I will lock in and not until. Until then my bank manager hates to see me coming each year ’cause he know the game and he will continue to drop his interest rate shorts for a one year term. ….. It’s also fun to negotiate !
Now where to buy ? I bought in Alpine Trails, four years ago. The property has almost doubled. It can’t keep this up for ever – there will be a correction – there ALWAYS is. No one can predict when. Just make sure that you can hold on for the long haul. You might make $$ if you buy/sell in the short run but in the real estate game you should NEVER bank on this. In the long run, real estate is well proven to be a sound investment.
…. and what nicer place than Fernie to buy and hold for the long run ?
gagbandit
