Fantastic Opportunities for Property Investors

Think about it.

House prices are flat, rents are high, and interest rates are plunging.

Is it a good time to be in the residential property market or not?

That was a rhetorical question.

Clearly, savvy investors now have opportunities that were unavailable just a few short months ago.

The most recent cut in interest rates pushed fixed loans down to 4.99% in early December.  That rate has since been withdrawn by the lender, however with expectations that rates will return to that level in the new year then investors with good equity in an existing portfolio and strong rental returns have the opportunity to lock in neutral or positive cash flows.

Think about how that would help your capacity to add to your portfolio.

Standard Variable rates have descended to the low 6% mark.

That means your ability to borrow more and buy better improves.

The pickings are especially ripe for investors with stable incomes borrowing 80% of the purchase price on a full doc application.

The doom and gloom in the stock market also plays to the advantage of property investors as newspaper readers’ measure fear in column inches. It means there is less competition as the fair weather investors flee the market or stand on the sidelines.

However, be under no illusion. The days of exploding capital growth and quick dollars are gone for the time being. The current environment is best suited to patient investors prepared to build wealth over the long term.

That said, the worm will turn and eventually there will be another property boom. Now is the time to get ready to reap the rewards.

However, the basic rules of property investing apply. You need to do your research, buy well and in the right place. You have to increase your equity by judiciously adding value where you can.

It’s also important you pick the right lender. Some have dramatically reduced their loan to value ratios. Others have not.

Credit rules have tightened and changed.

Low doc borrowers face new challenges. Some lenders now require 12 months of BAS statements if borrowers are unable to verify income through tax returns. That effectively takes the “low” out of low doc. However, for the time being, others do not impose this requirement.

Low doc investment refinances are also on the nose for many lenders. Others will still do them.

If you want to take advantage of the new low rates or find out how much you can borrow, or obtain funds to buy a property, please complete our online enquiry form and one of our investment finance specialists will contact you.