There is a bit of excitement in the air at the moment….. property investors have been taking advantage of the record low interest rates; according to the Australian Bureau of Statistics (ABS), lending to property investors increased 5.7 % in August, to $4.88 billion.

The large jump was much greater than the 3 % predicted by market economists, and came after a 4.7 % increase in July.

Some people may say, ‘so what’, but what we say is, the significant spike in lending to investors suggest property is becoming increasingly attractive to prospective investors, and potentially property values may rise…..

So what should you do?

Whether you’re already investing in property or you’re wanting to take the first step, to help you work towards your long-term financial aims, we suggest the following so you can take advantage of the current record low interest rates:

1. Give yourself a full financial health check

As well as looking at the day-to-day, month-by-month of what’s going in and where your money is being spent, look at what’s happening with your super and any other investments you may have.

If you already have a mortgage, how much have you paid off? Is there potentially room for releasing some equity? It’s worth remembering too, you are also allowed to use your superannuation to buy an investment property, but not one in which you plan to live, so this may well be another option.

2. Speak to a specialist

Once you know where you stand financially and what potential avenues you may have, speak to a financial specialist. They can advise on what routes are open to you for your personal financial circumstance and what you need to consider with each option.

3. Shop around

Borrowers appear to hold the cards when it comes to negotiating with mortgage providers, and even the federal treasurer has told consumers to ‘shop around’ until they get a competitive rate on their loan! As well as speaking to your current lender, we also suggest speaking to a mortgage broker, who has access to many other financial lending institutions and who may be able to get you a better deal.

4. Plan your strategy

Once you have a realistic idea of what you can borrow, then start planning your investment strategy; are you going to go for capital growth or yield investment. With the rates so low, there are some brilliant mortgage rates on offer, so there may well be some positive gearing opportunities for the right property.

5. Really do your research

We’re not just talking about browsing the web and looking at properties within your budget. We’re talking about really researching areas and knowing what you need to consider when you look at a property for investment purposes.

And consider all options. As well as looking at established properties, consider House and Land Packages too; we have some great opportunities going at Heartwood Estate Edgeworth, just outside Newcastle.

In the words of Ben Kingsley, co-author of the best-selling The Armchair Guide to Property Investing and co-host of The Property Couch podcast: “You’re actually researching human behaviour. Why do people want to live in a certain place? Is it amenity, prestige or something else? What makes it valuable? That’s what you’re looking for.”

With 40 years in the business, we’ve helped hundreds of investors realise their financial dreams through property and we’re always looking out to get the best from your investment. Contact us on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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