Why rising interest rates are good for investors

I must admit, I've been saying it for years now too: "Interest rates can't go any lower".  Well, they have and they are staying low for the time being.  But seriously, they can't go any lower than they are now, can they?  As an investor in this market, it is a win-win as long as you're in the game.  If rates stay low or do the impossible and fall lower, then your dollar gets stretched and mortgage payments go down on new purchases.  Principal gets paid down at a much faster rate, properties cash flow much easier, and people qualify to buy more things.  If rates go up, investors win too.  How can this be possible you might ask?

With rates climbing, investors that currently own property will see a lot more people needing to rent versus buy.  As rates climb, potential investors cannot qualify for the same mortgage due to the higher payment caused by the interest of the loan.  This keeps more people out of becoming landlords and instead they become renters, driving the supply of existing units down as more renters need a place now that they cannot purchase their own.  The second dynamic to this is that we are experiencing one of the few times that it makes more sense financially to buy than rent because the mortgage payment in a lot of cases is cheaper than what the asking rent is.  This causes a lot of people to take advantage of this window of opportunity to buy but when rates go up, this window closes.  Once we are back to "normal" scenarios where renting is cheaper than buying, most people will choose to rent and avoid the monthly financial stress of a higher payment and the risk of owning a property.

What investment is best for you?

As we get older, and supposedly more responsible, most wrestle with the idea of financial stability and how to finally get to a day we can retire.  The older you are the easier it is typically, since you have an established credit score and most likely have a few assets that have equity.  The younger crowd may not have life figured out as well or have as much at their disposal to go buy something new, and the two groups usually need different results with different time-frames.
A middle-aged or older individual needs something that produces more income and has less risk than the younger counterpart.  While both groups can take advantage of historically low interest rates, where to place your money or what investment to make is still a very personal decision affected by a number of outside factors.  Banks and CD's just don't pay a return that is worthwhile and the amount of time needed to realize anything substantial is longer than most are willing or able to wait.  Stocks have been doing well but there is a  fear that the market will correct itself from its all-time highs and what sectors won't be negatively affected cannot be accurately identified.  Real estate in most markets has been beaten up and stepped on to the point where there are great values for buyers able to get financing.  The old adage "Buy when others are selling, and sell when others are buying" couldn't be more accurate.
With stocks and bonds, you can leverage your money and try to determine what the future will hold but that is risky with markets at all-time highs.  Real estate allows you to leverage your money (typically 20-25% down) as well, lock in historically low interest rates so you pay down the outstanding principal much quicker, and come into the market after 6 years of it being depressed but on the upswing.  Real estate, especially income-producing property, allows your investment to make monthly returns to the owner as well as having others pay down the principal for you.  To me it is an easy decision to step into the real estate market and put my money to work for me.