When you have valuable real estate that you want to pass on to your heirs, Hinsdale Wills & Trusts attorneys help you fill out the correct legal documents. However, you should be aware that rising interest rates on real estate may hurt what you pass on to your heirs. So, how will rising interest rates impact the real estate market and your heirs?
How Will Rising Interest Rates Impact the Real Estate Market?
As interest rates rise, acquiring more real estate will be difficult unless you are utilizing all of your available cash resources. Instead of wealth to pass to your heirs, you may be passing debt, particularly if you are passing it on to a surviving spouse. Unless the interest rates drop in the future and you can refinance the remaining balance for lesser interest, Hinsdale Wills & Trusts attorneys suggest waiting to buy more real estate. Instead, will or trust what you have.
Less Power to Buy, Less Buying
With less power to buy, there’s usually less buying. This is just smart in terms of investments, and smarter when you intend to pass your real estate holdings to heirs. Eventually, this issue will begin to shift in the other direction, because that’s typically how interest rates and real estate prices work.
Sometimes it’s a buyer’s market, and sometimes it’s a seller’s market. Right now it’s a seller’s market, but sellers aren’t profiting as much either. For more legal guidance, contact Dan Walker Law Office.
