Is now a good time to be purchasing an Investment Property?
With the property market and finances being somewhat volatile, purchasing an investment property may seem risky business. However, with knowledge and specialist expertise on your side, you could not only seek to position yourself firmly on the investment property ladder but also make substantial financial gains. So in this article, we’ll guide you on how to best approach purchasing an investment property in this market.
Now is as good a time as any…
Smart money (capital that is being controlled by institutional investors, market mavens, central banks, funds, and other financial professionals.) is currently getting cashed up.
Why? They’re sitting on the sidelines, waiting to pick up a property at a 10-15% discount. With the current state of the economic and property arenas, we’re predicting that there may be those who already hold property who are over-leveraged and taking on too much debt or need to offload. With the government pointing towards interest rate hikes to balance out inflation, we may see an exodus of second or third investment properties. The result? An opportunity to take a dominant position and capitalise, if you’re in the position to do so. Making the most of the opportunity to snap up a discounted property as your first investment.
In a market where vacancy rates are at an all-time low and rent prices continue to increase as a result, you could look to make good gains on an investment property you intend to rent. However, it’s key to be mindful of your position. The very opportunity that will present itself is only born from a sharp increase of interest. And, as a result, not everyone will be able to purchase or hold property at 6%.
Investing in professional advice.
Whilst there is plenty of opportunities to be had, how do you capitalise on them? That’s where the appointment of a professional Property Strategist becomes extremely critical. Often those looking to invest push ahead with a single property purchase without thinking of the long-term plan or with things like inflation in mind. Leading to potential undue financial stress, plateauing your gains and restricting your options to further leverage and build your portfolio. It’s this lack of planning which will likely land property owners in hot water as interest rates increase.
So what are the benefits of working with a Property Strategist?
- Working with a professional Property Strategy otherwise known as a Property Investment Advisor, you’ll be able to access strategic advice regarding debt structure - strategically incurring and paying off debt to unlock the equity that can be reinvested into your next property. This long-term strategy moves you towards a life of passive income.
- Ensure that, despite being in an interest rate-rising environment, you can continue to safeguard your investments, expand your wealth and build your portfolio.
- Your dedicated Property Strategist will be armed with specialist knowledge of how the property market works and accurate predictions for fluctuations in aspects such as interest rates and other areas you may or may not be aware of - you can feel confident in the knowledge that your investment is in safe hands.
- Your Property Strategist will also be able to unpack tips known through sheer action and experience and advise you on the best places and
properties to purchase for investment. Giving you the inside track on key areas and property types that will rent or sell for profit.
In short, YES, it is a good time to be purchasing an investment property. To get started on your investment journey get in touch with one of our Ramsey Property Strategists who will sit down with you in a free 15-minute discovery call, and ask a series of important questions to work out if or how we can help you and unpack how they work towards building out a personalised investment property plan for clients like yourself.