Right time to invest, Interest rate rise ?

Firstly Jazzboy welcome to investing. The sometimes bumpy, sometimes smooth rollercoaster we all have a go at.

With interest rates looking to be certain to rise if you believe the media hype, we are all looking to again tighten the already near to breaking point belts of ours. However, with investing this could do one of two things, stimulate those nervous nellies to get the splinters out of their collecive bums and finally do something, or for those butterfly type investors to panic sell a few choice properties from time to time as they head for the hills or look to shares again.

I strongly believe that property is the smartest way to increase your bottom line over time.

Historically, property doubles in value every 7 to 10 years worldwide for the last 200 years. This means that anything bought now will be worth twice as much if you hold on and manage your investments correctly. There are odd pockets that buck the trend, but with such a high percentage of even mums and dads investing these days those pockets are getting fewer and harder to find.

Ok, so you are thinking what to do. Well the day after the last interest rate rise, I as a buyers agent sold 5 units to one buyer, and three other properties, all in that one day. So bucking the trend of close the doors and keep your voices down so the wolves will go away, several investors went wow, we better do something now and maybe lock in the interest repayments before the next hike.
We actually fixed the interest rate on three of our properties the week before the last rise at 6.94% for three years.

If you do your homework on the properties correctly and find out your actual physical costs or holding costs now for a property, and it is a doer, factor in your $$ contribution, allow for tax deductions of rates, body corp fees, management fees, interest on your loan and expected credit back from depreciation to boost your deductions properly, then make an informed decision and move forward.

Getting it through to settlement can sometimes feel like you are running a marathon if your support team of a good solocitor, mortgage broker, pest and building inspectors and agents arent of the highest calibre. Be methodical, but dont drag your feet, as in many cases should you believe it is a good investment, others will too.

Interest rates will rise and fall as the economy both local and global come to terms with oil pricing levels, international conflicts and who won the footy on thge weekend. Something you cannot control and are financially influenced by has to be frustrating, but not making a decision, not investing, not having a go is basically not an option. Which choices you make on those factors you can control is vital for your SANF or Sleep At Night Factor.

Take the deep breath and jump in the water, it may be a bit cold and unforgiving to start with but boy is it nice after a little while.

DD

Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!