Interest rates & cash flow
- By Peter Gordon
- •
- 06 Feb, 2020
It has never been more affordable to own property! It’s true.
With interest rates at an all-time low, borrowing money to purchase your own home or invest in a property has never been more affordable.
Who would have thought 12 months ago, we would have witnessed interest rates below 3% for an owner occupier home loan. Or between 3% and 4% for an investment loan.
But, lenders are playing hard ball. The interest rate you are charged will vary depending on which loan product you have. When looking at your investment property cash flow, do a comparison between principal & interest or interest only loan repayments. Your rate can also be determined by the size of your deposit or the equity in a property.
If you want to borrow money to invest, you will changed a higher interest rate.
But, don’t despair. Investing is a numbers game and you are still in the winning circle.
In today’s world with interest rates at an all-time low the vast majority of our property recommendations are neutral or positively geared after tax deductions*. Investors have never experienced interest rates at this level and for anybody borrowing money it should make them happy. Your holding costs will be reduced, keeping more cash in your pocket. By retaining more cash you can build stronger buffers as part of your investment strategy. Or you can continue to enjoy the life you have and do the things you love.
If you are thinking of investing let the team at Investo Property get your cash flow right first.
When investing budget above the average…
Based on 80k income pa, 5% rental yield, 4% interest only loan, all expenses and depreciation included*
If you would like to catch up for a coffee and a chat about your investment property goals contact the team at Investo now or you can preview our properties here.
| Quiet simply, the Palms is the place to buy! |
Sydneysiders and Melburnians, put aside your equally outstanding flat whites for a moment. Stop bickering about whether great beaches beat cool laneways (they do) and desist from debating whether all baristas require waxed moustaches (ideally).
Because Brisbane is closing in on the title of Australia’s best city, and we must join forces to keep this subtropical upstart in its place.
Time magazine recently named Brisvegas on its “World’s Greatest Places” list, and omitted our cities. It’s a huge shock (and who knew they still published Time magazine?). But they might be onto something.
Time points to the 2032 Olympic and Paralympic Games, which will be hosted in the maroon metropolis. Brisbane will do a fine job, even though it’ll baffle the world when rugby league is added to the schedule and Queensland is allowed to field its own team.
Time’s most radical claim is that Brisbane is worth visiting now, but tourism is surging. Not only did Lin-Manuel Miranda recently drop in to catch Hamilton , but hundreds of Hamilfans flew up to watch his interview with Leigh Sales (presumably unaware that it would subsequently arrive on iView for free).
A leading local agent has appraised each side of these duplex's to be worth $665k on completion and rent for $495 per week. So that is massive potentail instant equity of up to $390K on completion, which is incredibly hard to find.