Once again, the Reserve Bank of Australia has chosen to keep the official cash rate at the record low 1.50%. This was no surprise – in fact, economists believe that 2018 is most likely to see interest rates stay on a ‘holding pattern’.
Traditionally, the housing market is quiet in the first few months of the year, with Australians enjoying a summer vacation in January and slowing getting back up to speed in February. Now it’s March, and people are well and truly into the swing of things – so it’s the perfect time to look at what opportunities the rest of the year holds.
Are low interest rates making you consider an investment property?
With interest rates set to remain low for the coming year, it may be time to put the equity you have in your own home to good use and start looking for that investment property you’ve been contemplating. So, where do you start? Here are some tips:
- Do your homework. Find out which areas are providing good rental returns. Look at up-and-coming suburbs where infrastructure is planned or already underway.
- Don’t be limited by geography. The best investment property for you may well be in a city or town thousands of miles away.
- Do your sums. Make sure that the price you are looking at is matched by a good rental yield. Don’t forget to include stamp duty and council/strata rates.
- Don’t be emotional. Just because you may not want to live in the area/ the house/apartment that you are looking at doesn’t mean it’s not a good investment.
- Get advice. Once you’ve done the initial work, have someone look over your findings to make sure you haven’t missed anything.
Remember, your mortgage broker is here to help you make sure you are getting the best deal possible, they can advise on the correct loan structure, interest rates and loan product fees and charges. Whatever it is you are considering, please feel free to call us.