Interest rates rising: Does it actually affect me?

When it seems that all we hear about is those rising interest rates and the Reserve Bank being the ‘bad guy’, it can make the topic of property quite frightening. It makes buyers wonder and worry about our ability to pay back mortgage rates, or to take risks in buying, or what might happen should an investment go awry. Yet there is nothing to fear if we listen to the guidance of experienced and professional individuals who are there to help us in the world of investment properties.

It is important firstly, especially for those relatively new to the property market, to find an expert who can help and guide you through the process. Take your time when doing this, as there are certainly some crocodiles lurking that may very well take you for a ride. But for every croc there is a professional that will be willing and eager to guide and help you.

Secondly, if there is anything that we need to remember when being involved in property investment, it is the old adage that ‘location sells’. When properties are close to the CBD of a city, close to shopping complexes or within easy access to public transport, they will be worth your while. Ensure that when searching for that property to invest in, you take your time and identify the state of its location – now, and what may change in the future.

Many also worry about an inability to be able to pay of the extra mortgage of an investment property, and often this makes us miss out on that golden opportunity. What you need to remember is that you won’t be paying off that mortgage – your tenants will. Do not forget this – when investing in a property that will not be your home, it is an investment that will less likely fail on repayments. Sounds a little bold, perhaps, but remember that you will be receiving an income from someone else to repay that mortgage. When proper time and research is given towards finding the right property for you, then the income you receive from the tenants should cover all the repayments for it.

And of course then there is the very unpopular topic of the ever-increasing rise in interest rates. The thing is, the more they go up the less other buyers are likely to act, which boosts the rental market and subsequently drives your rental price up on your property! When there is not enough supply to meet demand, this is what happens, and if you are savvy enough to get in on the buying market when others are running scared – you’ll reap the benefits.

So don’t be afraid. With the right help and appropriate research, you can always come out ‘on top’ of the property investment market. Contact Great Investments for some sound advice to get you started.

It’s a seller’s market? Don’t be fooled …

Lately there are many saying that property prices are soaring higher than ever, and at this present time the market favors sellers over buyers. This may be true to a certain extent, but not fully. In fact, it is still a good time to purchase if you have done your research and are buying in a good prospective location. You simply need to be careful not to get ‘sucked in’ into purchasing properties in certain areas that are well-known amongst investors, and thus creating a burgeoning market in those areas and turning them into a paradise for those selling houses.

Of course location is ever-important, but so is research and time. Do not take your decision to invest lightly – take your time to identify areas to invest in, and remember to look outside the square. Monitor certain areas that are still relatively untapped within the property market, and monitor the growth of these areas – whether people are selling houses – over six months or more to see if there is an increase in value.

By investing careful consideration, time and effort into your property investments, you are effectively turning that seller’s paradise into a buyer’s paradise. Before you know it, you have become a pioneer instead of a follower, and potentially landed yourself into a goldmine of investment properties.