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ISCOVER
Staff Reporter
Investors who fail to take advantage of the property market could regret doing so, Property Investment Professionals of Australia (PIPA) has claimed.
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“You can’t deny it – the opportunity for investment in property is incredibly attractive right now,” said PIPA chair Ben Kingsley.
“Another rate cut this month has brought the cash rate down to an historical low of 2.5 per cent and home loan interest rates have hit very alluring levels as result.
“For investors this translates into lower costs and better returns and for aspiring investors it could mean that all important first purchase is now a very real possibility.”
Mr Kingsley said current fixed rate home loans are at historically low levels right now, making borrowing money cheaper.
“A fixed rate is a popular choice for investors who want cashflows that don’t ebb and flow, and right now we are in the rare position of seeing fixed rate products with rates of interest lower than variable rate products,” he said.
With general sentiment and media commentary around property turning positive, and property prices starting to show patchy increases, investors would be smart to consider a purchase now before this opportunity disappears, Mr Kingsley said.
“That being said, it’s critical investors keep a cool head. The worst investment decisions are often made on a whim or with little research, so the proper due diligence steps, including seeking out expert advice, are a must,” he warned.
Mr Kingsley said brokers should also help their investor clients be wary of property spruikers, out to prosper at the expense of innocent consumers.
“Unscrupulous operators are quick to circle around budding investors at this time, doing their best to cash in on increasing interest in the property market.
“Investors must be cautious to check the credentials of any person or company offering properties for sale or providing property investment advice.
“In particular, investors must remember to differentiate between advisers and marketers and remember not to listen to everything a salesperson tells you – they are, after all, trying to sell you a property.”
