This week’s tip is for those property investors considering buying their next vestment property and concerned about the interest rate rises.
It is really the “big elephant in the room” at the moment, and I know a lot of people are not sure which way to go. Whether to proceed with the property or to wait as they are concerned about income and cash flow.
If we look at history, when we’ve had interest rate rises, property prices generally have not fallen.
If we go back to our last interest rate rises in 2010/2011, some people would have sat on the fence and held off purchasing a property. But at that time, a lot of the Australian property market showed great returns. So those people that didn’t make a decision actually missed out on that growth over those next few years.
If you take it a step back further, I remember buying properties in the nineties when interest rates are up around 18% to 20% which was hugely high, hard to imagine now.
Considering those high interest rates however, property prices were still rising.
Property prices aren’t only related to interest rate rises. There’s a lot of other factors. It really comes down to supply and demand.
When we are looking at purchasing the next investment property or whether to hold our current properties, we really need to understand the cashflow.
So how do we overcome these interest rate rises?
As we know, with the forecast and the bank’s indications, there is going to be further interest rate rises over the next couple of years, which is pretty much a given.
We need to protect ourselves from those interest rate rises. So how do we do that? What I’ve personally done, is I have invested in these higher cash flow type yielding properties.
I have got more of a margin, so even if the property interest rate rises, it means my property is still cash flow positive.
We are coming to Sydney!
If you are interested in those higher cash flow type properties, we are coming to Sydney this Saturday, 25th June to host a live event. It is at 2:00pm at Rydges Parramatta.
We are going to cover the topics such as property income, cash flow, yield etc.
I am also going to present some of these higher type yielding properties, that are going to help protect you against the interest rate rises.
If you would like to find out what’s happening in the market in Southeast Queensland, we would love you to join us.
Want to register for our event?
Please click here to register for the event so we can send you all the details.
We are going to be down in Sydney from Friday 24 June in the afternoon and around early into the next week so if you can’t attend the event but want to discuss your property needs further, please reach out and we will try and accommodate a suitable time for you.
Do you know anyone in Sydney that would like to attend?
Feel free to share the registration link with anyone that you think would be interested to know more about investment properties, everyone is welcome. Looking forward to seeing you there.
See you next Tuesday!
Regards,
Geoff Tomkins
GCT Property
Buyers Advocate
PH: 0404 852 781
