Although investors may be initially cautious about investing in sectional title office schemes following the recent interest-rate increase, a shortage of office space should continue to make this form of investment attractive.

Mark McCreedy, MD of developer McCreedy Friedlander, says although he believes there may be another increase next month the longer-term trend is still stable for interest rates.

He says potential investors in office or industrial sectional title schemes may sit back and ask where interest-rates are going.

"But if you take a prognosis that we are not going to see hikes of up to 3% or 4% and are likely to see a 1% correction, then it really isn't going to make a difference because there is shortage of office space and big demand for people to own their own premises."

McCreedy says the outlook for the economy is still bullish and that growth in companies is still excellent.

"Therefore demand for office space is still very strong.

"The fundamentals are still strong for property ? and anyone who is doing their numbers properly would have factored in a 1% or 2% increase in interest rates anyway."

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge