Have you already bought a home and now considering purchasing an investment property in the very near future? Have the recent interest rate hikes made you feel hesitant?
Don’t Shelve the Idea Just Yet, Now May be a Great Time to Buy.
If you’ve been looking at purchasing an investment property, you may be in a great position to buy now!
Yes, the media has been shouting doom and gloom about the recent interest rate hikes, but the current climate can provide less competition and more negotiation power when purchasing a property.
Also, on top of that, rental tenancy vacancy rates have reached record lows, meaning the demand for rentals is higher than ever, which is great for you as you’ll find a tenant in no time.
So, are you ready to enter the property investment sector?
Why is Now an Ideal Time?
With interest rates and inflation rising, there’s been an ease in the market which may reward those who are ready to buy now.
In the 3 months to September, median days on the market increased to 35 days. That’s a large increase from a median of 20 days in November 2021. CoreLogic data shows there are fewer buyers at the moment, and properties are increasingly sitting on the market ready for purchase.
Reap the Rewards
Fewer buyers is a great sign for you as it means there will be more property options for you to choose from and less competition when making an offer on the property. Even better, by targeting properties that have been on the market for a while, you could potentially have more bargaining power (just be sure to do your due diligence!).
Low Vacancy Rates for Tenants
Currently, there is a high demand for rental properties across Australia. At 0.9%, the current national rental tenancy vacancy rate is the lowest it has been since 2006, according to SQM Research.
This means, your potential new investment property is just waiting for you to take action and relieve Australian residents seeking a rental home. People are actively searching for a solid rental property and if you can give them a solution, you’ll have an abundance of people applying to become your new tenant and ultimately pay the mortgage off for you.
The Benefits of Location Flexibility
When purchasing an investment property, you don’t necessarily need to buy in your home town, state, or city. You can check out areas further afield and make the most of what is on offer within the current property market.
You can look to buy in locations where property prices have already lowered and leverage the current buyer’s market to negotiate. Also, ensure to research areas with a healthy demand for rental properties. With these things combined, you’ll be in a great position knowing you’ll have a great tenant and have made a wise ruling with your investment decision.
Lower Demand Equals Lower Costs
What do we mean by that? Well, you’re most likely more selective when shopping for a property you want to live in which is completely normal as we all have specific ‘wants and needs’ for our homes.
Some ‘wants and needs’ when searching for a property for your self may include a pool, large balcony, or ocean view, however, these increase the budget and are not necessities for a simple investment property.
You’ll find with your investment property you’ll be more flexible, which opens more affordable property options. Simply look for the essentials that tenants want, such as a comfortable, low-maintenance, safe property.
Are You Ready To Purchase an Investment Property?
If you’re ready to jump into property investment come and talk to me.
I can discuss with you things you need to consider when it comes to your finances, including your borrowing power, unlocking the equity in an existing property, finding the right loan, and much, much, more.
If you are ready to become a homeowner, contact me today. We can discuss what schemes you might be eligible for and the borrowing options available to you.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.