There’s no right answer to what “break even” interest rate is acceptable. Interest rates have historically been as high as 15%, and that could happen again. However, I consider that unlikely, and it’s even more unlikely that they would stay that high for more than a few months – meaning that my cash reserve would only need to make up the difference for a short period of time. There’s no right answer, but there is a wrong answer: “no margin for error at all”. I see people buying properties (often in London) that just about break even at a mortgage interest rate of 3%, which just seems crazy to
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