Taking advantage of australia's low interest - blugm.com
Taking Advantage of Australia’s Low
Interest rate environment
The Reserve bank of Australia has kept the base interest rates at 0.75% but what does
that mean everyday Australians? Many savvy investors are considering different
means of conserving their wealth as they investigate options as far away as they can
from the traditional savings account.
The banks are not going to pass on the cash rate onto mortgages because they are
focused on profit for their shareholders, but this does not mean you are going to have
a hard time securing a good rate. The lower the cash rate the more room there is for
negotiation on introductory rates.
If you are a property investor on a variable loan or negative geared, now is a good
time to consolidate or buy another property. People are moving away from their
savings accounts and into other methods of investment to protect their wealth, so why
By purchasing a property, you are buying into one the most stable and lucrative
savings account’s there is. Focus on placing your rental income and additional savings
from your paycheck into your offset account in order to pay less interest and lose less
of your money to inflation.
That should be your goal, to beat inflation of a bare minimum. Most rental properties
will achieve a stable 3-4% income yield, so by making additional payments and
accruing equity, you can take advantage of these low interest rates and rapidly build
your property portfolio.
Make the most of your portfolio before property prices skyrocket due to their demand
or even run the risk of the Reserve Bank adjusting interest rates higher, meaning that
you will lose out on a good deal.
Many savvy investors are going to be interested in investigating their options when it
comes to sourcing a strong investment, so make sure you are doing the same. This
website is full of guides and idea’s that get you in the right direction.
Whilst this is a good time to get in the property market and buy up as much as you
can, make sure you do as much research as you can to make sure that it’s a good
investment for you and won’t run up costs. Avoid lemon properties as much as you
can and if you are planning on going on a spending spree try to avoid properties which
require renovations. You want to avoid as many unnecessary costs as possible as the
interest’s rates are volatile and you’d want to manage your investment risk by