If the news is to believed, the property market is about to crash.

The Reserve Bank of Australia has announced the fourth interest rate rise in as many months, and lenders are winding back how much people can borrow as they factor in higher interest rate repayments and cost of living pressures.

It’s all doom and gloom, isn’t it?

Not only have the pessimists got the proverbial glass half empty, they’ve probably knocked the glass back and drained the contents!

Well, we have seen a number of challenging economic times in our nearly 50 years of business, and we’re still here.

Remember property is a long-term investment. If you’re feeling a little twitchy in these uncertain times, here are our three reasons to keep your proverbial glass topped up.

Rents have risen

Tenants do expect periodical rent rises and, while they have steadied now, rents have risen over the last 12 months.

Looking at property data specialists Corelogic’s August home value index report, rents continued to trend higher through July, rising 0.9% nationally over the month to be 2.8% higher over the rolling quarter and 9.8% higher over the past 12 months.

We believe you should increase rents at intervals, but they should be fair. As we have a good professional working relationship with tenants, we very rarely are questioned when they receive a rent increase notice at the appropriate time.

Our vacancy rates remain low

When it comes to vacancy rates, as always, our vacancy rates are way below the regional average, meaning investors who use us to manage their property can manage their budget because they are usually certain of a regular, continuous income.

How do we do it? We’ll let you into two of our secrets:

• Our database

We have built up a database of over 10,000 tenants over the years who we send a weekly email to, advising them of our latest properties that have been listed for lease that week. Sometimes tenants are not even looking to relocate, but they see a property on this email alert and before you know it…. they are on the move.

• Targeting the right audience

By professionally marketing your property online with quality photos, floorplans and a well worded description of your property, we entice people to view it.

Generally, prospective tenants have a favourite website they view when looking for a new home and usually only look at this one site, so to ensure we get as close as possible to 100% of people looking to rent, we market across 14 different websites.

Interest rate predictions

Yes, interest rates have risen, but they have quite a way to go until they reach the 6.75% they were in November 2007, and many people survived that increase.

Current predictions seem to indicate it’s a case of riding this challenging time out.

CoreLogic Research Director, Tim Lawless, noted this interest rate hiking cycle may be “short and sharp”, with financial markets and some economic forecasters now factoring in interest rate cuts through the second half of next year.

“When interest rates start to stabilise, or potentially reduce next year, this could be the cue for housing values to find a floor,” Mr Lawless said.  “Similar to the trajectory of the upswing, this downswing phase could be a short but sharp one, depending on how high and fast interest rate settings go.”

The key to property investment is always in the budgeting, not stretching yourself, and focusing on the long-term goal.

If you are concerned, a good financial specialist will talk you through your options, and may find you a better deal on your mortgage.

In the meantime, check out our 10 great property quotes to keep you positive and motivated.

And if you need a bit more of a positive pep talk, come in and talk to us!

Our property management services can make your life easier, and increase your return on investment. We’ve helped thousands of people realise their dreams through property and our aim is to make your life easier. Simply give us a ring 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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