Home Loans: TAKING ADVANTAGE OF THE PERFECT STORM

What is the best move in this economic climate?

You may have heard, but the rental market along the Coffs and Clarence Coasts has been pretty crazy. Demand for rentals is through the roof, with one agent reporting over 180 applications for a single property.

So, why is this happening? It’s a classic case of supply and demand.

Demand is being driven by escapees from capital cities – they’ve worked out we offer a great lifestyle and haven’t had the same level of lockdowns. They’ve also worked out you can pretty well work from anywhere; it’s being driven by the build-up to our long-awaited bypass construction; it’s being driven by the continued expansion of course options at Southern Cross Uni, the growth of the hospital campus.

On the supply side, a lot of housing stock has been given over to Air BnB and the horticulture industry. But we’ve also seen the impact of government on investment property lending – ASIC and APRA have been issuing guidances and dictating policy around interest-only lending, around investment property holding costs and this has seen supply of funding to investors dry up.

All in all, it’s been a perfect storm.

So, what can you do about it? The simple answer is to take advantage!

With high rental returns being achieved and an ability to be selective with your tenancy; interest rates at all-time lows; and increasing property values building your equity, there has never been a better time to have a look at your investment property options.

Your broker will consider your current situation surrounding income, equity, and deposit. We’ll have a look at your expenses and projected rent returns and we can work out your borrowing capacity and give you plenty of options being the right lender and the right loan combination for you. If you’re really doing it right, you’ll be talking to your accountant about an ownership structure and how to maximise tax offsets and you’ll be talking to your preferred property manager and agent about what sort of properties are in most demand and where they are located.

Remember buying an investment property is an investment – not a matter of speculation.