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Low Rates Means Bargain Buying Time

On Jun 03 2014
Tagged as:
  • Investing
  • Buying
  • myLJHooker Home


Buying a property as an investment is an exciting prospect. However, there's an important consideration before you leap into investment territory. Deciding when to buy is as crucial as where to buy. Fortunately, the answer is certainly favourable, given current market conditions.

Low Rates Means Bargain Buying Time

Favourable Market Conditions

Buying a property as an investment is an exciting prospect. However, there's an important consideration before you leap into investment territory.

Deciding when to buy is as crucial as where to buy. Fortunately, the answer is certainly favourable, given current market conditions.

 

 

Why Buy Now?

Buying property as an investment is all about maximising your rental yield. If you can secure a property at an affordable price while reaping strong weekly rental prices, you may find yourself with a tidy investment.

Some investors are even able to use their existing portfolio to raise capital for further property purchases.

Whether you're looking for your first bargain investment property or want to extend your existing portfolio, it's clear that now is the time to buy.

With an impending population increase and record-low interest rates, investing now could reap rewards in the future.

 

 

Acting in the Present to see Success in the Future

If you invest today, you may see strong capital growth in years to come. Acting in the present can lead to success in the future if you secure the right tenants, buy in a high-growth area and ensure there's appropriate diversification in your portfolio.

One factor independent of your own skill as an investor is the affordability of lending products. Whether you obtain finance to purchase rental properties from a bank or non-bank lender is up to you, but the good news is that record-low interest rates make obtaining finance easier than ever.

The Reserve Bank of Australia has indicated the official cash rate (OCR) should remain stable for much of 2014.

The current OCR is 2.5 per cent, a figure that it has been since August 2013. This rate is a key influencer of lenders' interest rates. Thus, a low cash rate means more affordable mortgage products, making investment a desirable prospect.

Furthermore, the Australian population is expected to increase in decades to come. Between June 30 2012 and 2013 alone, the population increased by 1.8 per cent, climbing to 23.1 million people, according to the Australian Bureau of Statistics.

This figure is set to increase further, which will naturally put pressure on housing stocks. Investing now may pay off in the future, as a larger population seeks housing options.

Current conditions are favourable to scooping up bargain properties and investing for the long term. LJ Hooker can provide property management services that help maximise your rental yields, while home loan specialists will ensure you get the best finance for your investment properties.

When you work with us, you'll have access to a broad range of properties across the country. If a vendor wants to effect a quick sale, we can get you in touch with them to secure a great price.