Have you been thinking about buying an investment property? If the answer is yes, then you're in luck! Now is the perfect time to invest in property.
Now, before you say: ‘well, of course a mortgage broker would suggest now is the perfect time to by an investment property', let's look at the reasons why.
Low interest rates
Firstly, and very importantly, interest rates continue to hover near-record lows. At present, many of Australia's lenders are offering interest rates below 4%.
So what does that mean for you? There are a couple of benefits associated with lower interest rates, namely lower mortgage repayments and a more affordable cost of borrowing.
Strong property price growth
While low interest rates is one great reason to start investing in property right now, it certainly isn't the only reason. Another reason why now could be the perfect time to build your property portfolio is property price growth.
Over the last few years, property prices have soared across most markets. Research conducted by Core Logic found property values across the combined capital cities have risen 10.7% over the last 12 months alone. Better yet, many analysts believe many markets (specifically Sydney and Melbourne) will continue to perform strongly in terms of property price growth for the foreseeable future, which should sound like music to your ears.
Vacancy rates are low
Finally, data from SQM Research shows the national vacancy rate is currently just 2.4%. To put that in perspective, that is about one week a year that the property is empty. As a potential property investor you want to know that when you buy a property, you won't have too much trouble filling it. And, judging by this data, you shouldn't have too much trouble finding an appropriate tenant.
Of course, no two property markets are created equal, so it's important to do your due diligence before you leap into the world of property investment and make sure you buy in an area that boasts strong rental demand.
As you can see, there are plenty of reasons why now is a good time to be a property investor. Of course, before you dive in head first, it's imperative that you take the time to think about whether or not this is the right decision for you.
When it comes to buying an investment property, timing is everything. You have to make sure you're in the right financial position and are fully aware of the ongoing costs associated with owning an investment property.
Speak to your Mortgage Choice broker to discuss the costs of owning an investment property and see whether or not this is the right decision for you.