Tuesday, November 20th, 2018
As the local property market continues to evolve and fluctuate, the question about whether investors should stay or go is a sensible one to consider.
If you believed everything you read in the media, recent coverage might lead you to think that the property bubble is bursting and that we are facing a downhill turn in property prices that could rock the world of current and potential property investors.
But it’s important to put things in perspective.
If you are already a landlord holding investment property assets, quickly throwing in the towel to sell because you fear a market downturn could actually be the worst possible thing to do.
Why? Because as long as you already have a secure tenant helping you pay your mortgage, and provided you had crunched your numbers well pre-mortgage, to ensure you had some wiggle room in your budget for interest rates to climb, your world won’t really change in the short-term.
The proven way to invest in property is to hold it for as long as possible and benefit from the eventual upturn that is inevitable with time.
So what if the market really does fall tomorrow?
The quickest way to lose money is to panic and cash in your property chips – selling your properties at this diminished price and potentially losing money. But by staying calm and holding onto your property, the market normally bounces back and there will still be lots of potential for you to profit on your investment in the long-term – just as you had hoped when you made the commitment to buy property in the first place.
Research and Budgeting is Critical for Property Investment Success
The need to remind you of these issues only highlights the fact that too many people enter into the world of property investment without the right planning and professional advice from trusted industry experts.
Taking on a mortgage – or any personal loan or business loan – is a serious commitment and it should always be entered into with your eyes wide open – underpinned by advice you can trust from relevant financial experts, including mortgage brokers, lending specialists, your accountant, and perhaps a financial planner.
Look For The Best Deal To Help Your Weather The Storm
Property markets will always fluctuate but to help protect your future, shopping around for the best interest rates is a positive first step before taking on any loan. Of course, it pays to remember that there is more to a smart loan than just interest rates. Flexibility within the loan is also critical and with quality advice from loan brokers who take the time to understand your individual circumstances, you can secure loans that are tailored to meet your goals – without the stress of being squeezed when things do get tighter.
For more advice on securing the right loan to suit your lending needs, talk to our loan broking specialists at Loans Actually.