The Reserve Bank of Australia has held the first meeting for 2020. The Board has decided to keep interest rates on hold at the record low of 1.75%pa despite speculation of a rate cut. However, economists are predicting another cut in rates – perhaps two – for 2020.
Many people find the beginning of a new year is a great time to look at the opportunities for the coming year. Have you considered an investment property? With record-low rates and stable prices, it’s worth looking into.
Property Investing while Interest Rates are Low
Your starting point is to check your credit rating. If you pay your credit cards on time, you should have a good rating. Next, have a look at your mortgage and the equity that you have in your house. This is important and should also give you an idea of the price range of your potential investment.
Assuming everything is in place, the next step is finding your investment. Do your homework on this – the ideal investment property is probably in another town or even in another state. Look at new areas on the outskirts of cities or in regional areas, and make sure it has public transport, school and other infrastructure.
When you’re ready, it’s time to look at your finance options. You’ll need to talk to an experienced mortgage broker. That’s where we can help. Even if you are just considering an investment property, give us a call and we can take you through what to expect.