Hey, mates! The Aussie property market is throwing us some curveballs in 2023, what with those pesky higher interest rates and lower yields. But don’t stress, there’s always a way to spin it to our advantage. Let’s chat about ten savvy tips for playing this market like a pro.
Get Your Eyes on Growth Areas: Yields might be a bit on the low side, so keep an eye out for neighbourhoods that look like they’re on the up and up. Things like new infrastructure, more people moving in, or higher demand for properties are all good signs.
Think About Interest-Only Loans: With interest rates on the climb, an interest-only loan could take some pressure off your wallet for a while. Sure, you’ll have to pay off the main chunk later, but it could make things easier for now.
Mix Things Up a Bit: When things get unpredictable, spreading your risk is a no-brainer. Invest in different types of properties and in different areas - that way, you’re not putting all your eggs in one basket.
Get Your Haggle On: There might be fewer investors out there because of these high interest rates. So, use this chance to negotiate a bit harder and snag a deal.
Look for Properties You Can Add Value To: With lower yields, rental income might not be your main moneymaker. If you can find a property that you can jazz up a bit and increase its market value, you could be onto a winner.
Keep a Healthy Cash Stash: Higher interest rates can leave you a bit strapped for cash. So it’s smart to have a bit of a buffer in the bank to cover unexpected costs or if interest rates go up again.
Get to Know Your Tax Perks: When you’re dealing with lower yields and more expenses, make the most of any tax benefits you can. Chat to a tax pro to make sure you’re claiming everything you can.
Play the Long Game: Investing in property isn’t a get-rich-quick scheme, especially when the market’s a bit tough. Keep calm, stick to your plan, and focus on the long-term gains.
Pay Off Non-Deductible Debts: With high-interest rates, debts cost you more. So, try to pay off non-deductible debts, like your own home mortgage or personal loans, before you get another investment property.
Get Some Pro Advice: The property market can be a real puzzle, especially when things are a bit shaky. Having a chat with a financial advisor or property investment guru can help you make sense of it all.
So there you have it! Even when the market is a bit tricky, there’s still room to make savvy moves. By using these tips, you’ll be ready to tackle the Aussie property market of 2023, no matter what it throws at you!