Coping with rising rates and soaring property prices

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First, the good news. Property markets in many parts of the nation are rising. It is a seller’s market, with demand outstripping supply. Agents are using the threat of competition from other buyers to pressure homebuyers to secure properties quickly, without taking the time to conduct due diligence or make an informed decisions about purchases. 

This is a real danger. Getting carried away by the buying frenzy and rushing into a decision that could end up very costly is something you would want to avoid in any market, particularly in a hot market such as the one we’re currently experiencing.

If you’re investing more than half a million dollars into any asset, you would want to take the time to analyse any purchase to ensure you come out ahead in the end, whether you’re buying to live in or investment purchase.

Don’t fret about missing the opportunity. There will always be properties on the market that will suit your needs and wants as a home buyer or investor. But if you buy an overpriced lemon, it will take a very long time to recoup your investment. In our article on How to buy well in the current market, we show you have to avoid the pitfalls of panic buying.

When buying any property, you also have to consider where future demand will be, and how you could attract future buyers. In our article Buying for Profit, we reveal tips to picking the right location and the right property to ensure you get top dollars on your property should you decide to resell.

Now the not so good news. As expected, interest rates went up again during the May RBA meeting. Many industry experts are now predicting a standard variable rate to go up to 9.5% within a year. This has many ramifications for property buyers. At the very least, it means carefully balancing the benefits of discounted loans against the loan features being offered. Sometimes the cheapest rate is not the most advantageous in the long run. In our article on Discounted Mortgages we examine cheap loans packages and show you how to select the best deal for your needs.

Finally, our experts provide tips and tricks for reducing the sting of rising interest rates.

While many Australians believe property prices will continue to rise over the next few years, rising rates are expected to put a cap on that rampant growth.

Adjusting to new investment conditions will require careful planning, good market intelligence and a long-term, unrushed approach.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

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Sunday, Sep 24, 2017
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