If I were to ask you right now, “can you afford to buy a home”. You would know your answer whether it’s “yes” or “no”.
But I know there will be more “No”, so why is that?
Sure, the market is going crazy and will only get crazier, even though values are slowing down. And in a city where the median house price is over $1 million dollars, it may seem impossible to even consider buying a decent home without stretching yourself financially.
Then there’s talk of interest rates rising which could leave homeowners struggling to make payments and potentially defaulting on their mortgages.
But is this a real concern?
Of course, it is.
But is it plausible in our near future?
Here’s the truth.
The Residential Property industry is worth well over $9 Trillion dollars which is more than the ASX, Super, and Commercial Property industries combined. We have the RBA who are committed to keeping the cash rate low till at least the end of 2023 in order to help stimulate and protect our economy, plus they know how important residential property is to the economy.
Yes, interest rates will rise but not so much that you won’t be able to make your payments, in fact, when a bank assess your borrowing capacity, they do so at a higher interest rate so if something does happen, they know you’re able to continue making payments. And if the banks are doing this, then they obviously know something we don’t, and that’s because they don’t count on local media for their information, but actual statistical reports and data.
This is the same data we use to help our clients and again, this is a general exercise but if you want to know more about your current situation, how to prepare for the worst and what we can do to help you Pandemic-Proof your future then get in contact on 1300 522 562 or email team@jrprosperity.com.au
When considering an investment property with positive cash flow, 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.
