Property investment: how to make a move in an uncertain market
Surging interest rates and sinking home values have driven away real estate investors and other buyers, but the time to act is potentially approaching.
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Australian Bureau of Statistics lending data shows investor and owner-occupier mortgage commitments both dropped 35 per cent in the year to January 31. Home values in a majority of cities and towns are lower over the past 12 months.
As mortgage repayment costs soar, more people are priced out of the market, giving investors – who typically have more equity to employ than owner-occupiers – the potential to bag a long-term bargain.
Get RARE Properties founder and author Rasti Vaibhav says while there are short-term challenges, there are plenty of opportunities for those who look beyond them.
“When put in a long-term context, it’s clear that the trend in property prices is up, but when conditions change, many investors elect to sit on their hands instead of actively looking for opportunities,” Vaibhav says.
“This can be a mistake. As (billionaire investor) Warren Buffett says, it’s wise for investors to be fearful when others are greedy, and greedy when others are fearful.”
Investment specialists say traditional rules around investment borrowing still apply, and it’s wise to get pre-approval from lenders.
View the article on The Weekend Australian here.
As mortgage repayment costs soar, more people are priced out of the market, giving investors – who typically have more equity to employ than owner-occupiers – the potential to bag a long-term bargain.
Get RARE Properties founder and author Rasti Vaibhav says while there are short-term challenges, there are plenty of opportunities for those who look beyond them.
“When put in a long-term context, it’s clear that the trend in property prices is up, but when conditions change, many investors elect to sit on their hands instead of actively looking for opportunities,” Vaibhav says.
“This can be a mistake. As (billionaire investor) Warren Buffett says, it’s wise for investors to be fearful when others are greedy, and greedy when others are fearful.”
Investment specialists say traditional rules around investment borrowing still apply, and it’s wise to get pre-approval from lenders.
View the article on The Weekend Australian here.
Next steps: Should you want to learn how the author built his $5m balanced portfolio in 7 years and aspire to own something similar, feel free to get in touch via email at rasti@getrare.com.au or book an appointment here.
Disclaimer: This article is general in nature and does not take into account your situation. You should consider whether the information is appropriate to your needs, and where applicable, seek professional advice from a financial adviser.
Disclaimer: This article is general in nature and does not take into account your situation. You should consider whether the information is appropriate to your needs, and where applicable, seek professional advice from a financial adviser.
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