I often get asked the question, “What if?”
- What if interest rates go up?
- What if the government changes negative gearing?
- What if I can’t get a tenant?
- What if the property market declines?
But what we really should be asking is:
- What if interest rates go down?
- What if the government doesn’t change the negative gearing rules?
- What if you do get a tenant?
- What if the property market does go up?
We should be looking at the positive perspective rather than the negative, because we are currently in an excellent overall economic position.
Interest Rates: It has never been a better time for great rates, and the choice has never been wider. The Reserve Bank is even considering lowering the interest rates further, so now is the time to take advantage of it!
Negative Gearing: If the government does consider this – and I do mean if – it would be a retrospective decision. Which means now is the time to invest, because you will get to enjoy the benefits now and for the life of the investment. Any changes will only affect investments after the decision is made.
Tenants: Many companies offer rental guarantees, usually from 3 to 10 years, which gives you the assurance that you will continue to receive rent after the property settles. And don’t forget Landlord Insurance, which is there to give you protection and peace of mind.
The Property Market: As long as you seek advice from the right people, who have their finger on the pulse and who are doing the research, you’ll be able to benefit from the property market and make smart decisions in line with the current conditions. Don’t fall into the common trap of thinking you can do it yourself when you don’t have the industry experience.