FEEDBACK from my potential clients suggests people are confused about how to move forward in our current economic climate where an uncertainty surrounds not only Australia’s but the World’s financial future. Property investors can view the downturn in various ways including a winfall for those cashed-up investors who can take advantage of the lower property prices currently available or – from a seller’s perspective, dismay at the lower returns on their property investments.
Many property owners are choosing to hold on to their homes until the market strengthens, while others in financial hardship feel the need to sell as quickly as possible just to get the bank off their backs.
There are a few strategies to consider during times of economic uncertainties.
1. Buy properties that are in the highest rental demand locations.
2. Avoid over-gearing, in other words only borrow money you can safely service from your cash flow.
3. Take out landlord insurance as an absolute minimum.
4. Always finance the purchase of an investment property over the longest term and with interest-only loans.
5. If you want repayments to be a set amount, lock in the rate.
6. Avoid fringe lenders – for the short term at least.
SB Realty Pty Ltd was founded by Shirley Broun, who spent much of her working life as a journalist, including several editorships and a successful 10 year period as Proprietor and Managing Editor of her own national award-winning publication in the entertainment industry. [Read More…]
