Are you watching rising property values thinking “when will this end?”.
Well, I’m sorry to be the bearer of bad news but despite all the industry gurus who said the market would crash when the Pandemic first began, and despite people still today saying that interest rates will rise sooner, leaving many homeowners and investors in a worse position, and despite the majority of Australian’s being in lockdown right now, it may be some time before we see prices begin to slow significantly.
Commonwealth Bank head of Australian Economics, Gareth Aird said that as long as the RBA keeps the interest rates low, property prices will continue to grow despite the large financial negative shocks the economy is currently experiencing.
This is because low-interest rates mean super cheap finance, and people can borrow more and more money.
But is there a risk that interest rates can jump significantly from 0.10% anytime soon?
Many will say yes, in fact the big 4 banks and a number of influential brokers were warning buyers to steer clear of borrowing and prepare for an interest rate hike, but the RBA has been consistent with their plan to keep interest rates low till April 2024 for well over a year now.
So, to answer your question, it will be some time before we see a significant slowing down of housing prices and the longer you wait to buy and invest, the closer to become to potentially be priced out of the market all together.
So, if you’re wanting to buy but are unsure how to navigate the current market or how to pandemic-proof your investments, then get in touch because, during this pandemic, we’ve helped hundreds of clients take full advantage of the current market without paying a 6-figure deposit.
Our goal is to help as many people as possible, create a future of financial freedom for themselves and their loved ones so get in contact on 1300 522 562 or email team@jrprosperity.com.au
When considering an investment property with positive cashflow, it is important to make sure it is suitable for your specific financial goals and objectives. Remember to do your due diligence and if you need advice; JR Prosperity Partners can help you decide if this is the best strategy for you.
