In light of recent changes to lending laws, interest rate reductions to historic lows, and the property market now evidently swinging upwards, now is an excellent time to step into the investment market, expand an existing portfolio, or take advantage of attractive market conditions and trade up.
With timing crucial, and amidst a highly competitive lending environment, recent developments not only make it easier to get a loan, but also to service it.
David Gillham, Director of Noel Jones Camberwell, also suggests that given post-election government stability, all nails have been hit on the head for anyone looking to get into or expand their presence in the property market.
“Government stability always plays a key role,” explains David. “With any uncertainty around proposed changes to negative gearing and the capital gains tax now settled, investors can move forward with much greater confidence.”
He also suggests investors give due consideration to the type of property they buy. “You should always look for properties there aren’t a lot of. For instance, a solid brick ‘60s or ‘70s apartment is more bullet-proof than a new apartment.”
The current economic climate also makes it easier to secure a positively geared property, with rental returns covering both the loan and other associated expenses.
Director of Noel Jones’ Ringwood, Brett Freeman, explains that today’s increased affordability gives investors the opportunity to buy in a better area, secure better tenants, and attract higher rental returns.
He also recommends getting sound advice from the outset. “Have your end-game in sight. Be clear on your long-term goals and strategy, whether looking for strong returns or future capital gain, and use a trusted accountant and lawyer to set up the right structures.
“Investors should also avoid emotional buying,” he adds. “Choose property according to its location, amenities, tenant appeal and potential growth.”
With each investor’s situation unique, it’s imperative to explore all the options. At Noel Jones, we welcome the opportunity to help investors achieve their goals, and also expertly manage their property portfolio.
Having built a large network throughout our 40-plus year history, we can also connect you with a range of trusted professionals.
