Problem
Suppose you have purchased a luxury investment property in 2019 in a country that allows foreign real estate investments. It can be any nation of your choosing. Assume that 80% of your international investment property is financed through a local financial institution in that country. The property value can be any amount.
Recently, most central banks around the world have increased interest rates. How does the rise in interest rates affect your monthly repayments? Given the current situation, what are your options in refinancing your investment property? Explain the costs and benefits of refinancing. You may choose two banks for calculating the costs and benefits of refinancing.