Given the all-time low interest rates (the RBA's cash rate is still 1.5%, since August 2016), there is plenty of interest in property investment. In Victoria, some investors are buying to beat the changes due to implement on 1 July 2017, which will mean they can no longer benefit from the off-the-plan stamp duty waiver.
Here's some current advice for would-be or existing Property Investors, as suggested by BMT.
1/ Take advantage of cheap money. Interest rates are at an all-time low. Now is a great time for investors to take advantage of cheap money.
2/ Consider rentvesting. For those finding it difficult to get into the property market or to invest in property while servicing a primary place of residence, it could be worth considering “rentvesting” (ie buy a more affordable investment property in a growth area while renting elsewhere.)
3/ Can grow and diversify your portfolio? Given the potential equity generally held in these properties, there could be significant scope for investors to expand their portfolios in 2017.
4/ Improve your existing investments. If buying another property isn’t on the cards in 2017, maybe you could consider renovating some of your existing investments.
5/ Look outside of your own backyard. Property markets all over Australia move ahead at different times based on a variety of key growth drivers. As a property investor it is important to consider other suburbs, towns and states. You can research this yourself, else I can connect you with professionals who offer this service.
If you'd like to review your investment mortgage options, whether to buy new property or renovate existing, please give me a call.
Cheers, Marvin Ph 0431 376 008