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With experts predicting interest rates to stay low for some time,
more property investors are expected to continue coming out of the woodwork
in the next few months to sink their teeth back into the Perth market, according to a
Subiaco-based property buyer’s agency.
Property Wizards’ managing director
Liz Sterzel said the company had experienced a massive jump in enquiries over
the past six months, and believed there was much more to come.
“Investors who were last year worried the market might stay in
decline have been coming back into the market with certainty since the
start of the year,” she said.
“They are being buoyed by very low interest rates and general scepticism of the stock market following its worse
performance in many years and – if the Reserve Bank keeps interest rates on hold early next month as many
experts are predicting – we expect many more investors to be out
snapping up Perth
property.
“With interest in the market climbing quickly, savvy buyers
need to act fast to get a head start.”
But Ms Sterzel warned potential investors that although interest
rates were at an all-time low, they wouldn’t stay there for good,
meaning buyers had to be prepared to cope with an eventual rise.
"Once they start to go up, interest rates could increase quite rapidly
and catch some people out, so we always advise investors to have a plan for
their cash flow in case they have to plough in extra funds to meet their repayments,"
she said.
Ms Sterzel said successful investors were
clear about what they were looking to achieve by purchasing an investment
property and many sought guidance to focus in on what would best help them
reach their goals, as well as helping sort the wheat from the chaff.
“Our research has shown time and
again that investors are searching for three key things to flow from
property investment – a substantial boost to their personal wealth, a
more secure retirement and lifestyle benefits,” she said.
“For people seeking those things,
the key to property selection is in making sure you don’t make an emotional
decision which can cloud your investment judgement.”
Ms Sterzel offered the following tips to
potential investors:
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Focus on attributes that create a good money-making
property, rather than the fact you like the area, the home’s décor or
the vibe of the street – they are very different.
·
Keep top-of-mind that you will not be living in the property
and, therefore, do not necessarily need to like it.
·
The property should have specific attributes that will
drive growth of the property itself, such as the proportion of the purchase
price that goes into the land versus the actual bricks and mortar.
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