Invest in Real Estate and Diversify Your Portfolio

CityVest invests in highly selective real estate private equity investment funds.

Get Started View Investments

Question IDs
Object Type Map


Visibility Map
Active Map
Validator Map
Children Map


Parent Map


Question Options Map


Question Options


Question Option Activate Map


First Name
Last Name
Phone Number
Email
 

Interest Rates 101

Interest rates are an absolute critical component in any real estate investment opportunity. They have a significant impact on the value of income a property could produce which impacts the present value of future cash flows. There are financial institution interest rates, i.e. banks or lenders, and government based interest rates which are influenced by the Federal reserve.

Why do interest rates rise?

There are many factors that contribute to the rise in interest rates. At a basic level, interest rate hikes occur due to sustained Gross Domestic Product (GPD) growth, improved consumer confidence, healthy employment creation forecasts, and employment reaching capacity levels. Other important factors that change interest rates are inflation, bond supply, bond demand, and the federal reserve. Inflation is the substantial rise in general prices which is directly related to a rise in volume of money that results in loss of value of currency. Please see the article titled, “Benefits of Investing in Real Estate” for more information regarding inflation. When inflation rates rise, interest rates rise to compensate for any anticipated loss. Similarly, with an increased supply in bonds, interest rates will increase due to lenders being forced to borrow at a higher interest rate depending on the rates of supply and demand. When there is a decrease in bond demand, higher interest rates will occur due to lenders offering a high return to gain more capital. Lastly, the federal reserve has the power to raise or lower interest rates. The Federal Reserve tends to raise interest rates when there is a significant increase in inflation or when unemployment drops lower than the normal rate.

What Does This Mean for Real Estate Values?

As interest rates rise, the more expensive it becomes to borrow money to invest. Thus, the value of any future cash flow from a real estate investment decreases with raised interest rates. This lowers the value of the asset, resulting in a lower return. As a result, higher interest rates cause investors to seek higher returns which makes any property less attractive because the return is ultimately unchanged.

How Does This Impact Investors Today?

The 2008 financial crisis fueled the Federal Reserve’s quantitative easing program consisting of more than $2 trillion dollars, with a purchase of over $3 trillion in assets. This strategic move has kept inflation at a normal rate. Today, our recovering economy continues to show signs of stability, which means now is an excellent time to invest. Cityvest can help you weigh the possibility of rising interest rates in choosing the type of real estate investment you intend to pursue. Contact Cityvest today!

Invest With Confidence

We Do the Work to Provide You the Best investment Opportunities

  • A completely new alternative to investing in stocks and bonds.

    Every CityVest investment undergoes a thorough due diligence process by our experienced underwriting team. Of the hundreds of projects reviewed each month, fewer than 1% are approved.

    CityVest can help you:

    • EARN PASSIVE RETURNS OF 10% TO 25%

      You benefit through professional investment structures, which target passive returns for our investors in a range from 10% to 25% - often with a preferred return.

    • ACCESS INSTITUTIONAL QUALITY FUNDS

      CityVest pre-screens investments for you through our underwriting and due diligence process. We partner with institutional investment funds and sponsors and we seek a preferred rate of return.

    • PORTFOLIO DIVERSIFICATION

      Since real estate investments typically generate cash flow income, while common stock does not, real estate valuations tend to be less volatile and less sensitive to market risk factors.

    • COMPLETE INVESTMENT MONITORING

      CityVest will handle all of the accounting and administration of your investment, while you can monitor the returns.

We simplify online real estate investing.

Get Started

Copyrights © 2018 All Rights Reserved by CityVest Capital Inc
Privacy / Terms of Service

Please read the important disclosures below.

CityVest.com is a website owned by CityVest Marketplace LLC, a subsidiary of CityVest Capital Inc. (together with its affiliates, “CityVest”). By accessing this website, you agree to be bound by its Privacy Policy and Terms of Service.

The information on this website does not constitute an offer to sell, a solicitation of an offer to purchase or a recommendation of any interest in any investment or security described herein. Any such offer or solicitation shall be made only pursuant to the final confidential offering documents of any entity described on this website, which will contain information about each entity’s investment objectives and terms and conditions of an investment and may also describe certain risks and tax information related to an investment therein and which qualifies in its entirety the information set forth herein. The information contained herein does not constitute part of the offering documents of any entity. An investment in any investment included on this website, entails a high degree of risk (including the possible loss of a substantial part, or even the entire amount, of an investment) and no assurance can be given that any entity’s investment objectives will be achieved or that investors will receive a return of their capital. Past returns are not indicative of future performance.

Any financial projections or returns shown on the website are estimated predictions of performance only, are hypothetical, are not based on actual investment results and are not guarantees of future results. Estimated projections do not represent or guarantee the actual results of any transaction, and no representation is made that any transaction will, or is likely to, achieve results or profits similar to those shown. Any investment information contained herein has been secured from sources we believes are reliable, but we make no representations or warranties as to the completeness, adequacy or accuracy of any information provided. Investors should conduct their own due diligence, not rely on the financial assumptions or estimates displayed on this website, and are encouraged to consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any investment opportunity.

Prospective investors should read the confidential offering materials of any privately offered investment product, including all risk and conflict disclosures included therein, before investing. Please read detailed information about such calculations in the investment manager’s detailed financial and information material. The information contained herein should be treated in a confidential manner and may not be reproduced or used in whole or in part for any other purpose.

CityVest does not make investment recommendations, and no communication through this website or in any other medium should be construed as such. Private placements on CityVest.com are intended for accredited investors (for persons residing in the U.S.), and for persons residing abroad in jurisdictions where securities registration exemptions apply. Private placements of securities are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Private placement investments are NOT bank deposits (and thus NOT insured by the FDIC or by any other federal governmental agency), are NOT guaranteed by CityVest, and MAY lose value. Neither the Securities and Exchange Commission nor any federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any of the information or materials provided by or through the website. Investors must be able to afford the loss of their entire investment.

© 2018 CityVest Marketplace LLC. All rights reserved.