By now you will have realised that I am extremely bullish regarding the Australian residential housing market.
I believe Australian residential property is the very best place to invest your money for consistent long term growth. I am also a great believer in keeping a cash reserve or having a line of credit home loan with unused limit available to cover periods unforseen financial or mortgage stress. I also believe every property investor should have a valid will, various power of attorney’s, as much life insurance as your budget will bear and a mortgage checker program. I don’t think I need to spell out why you should consider these products, you are smart, you are considering a residential property investment!
All the risk management products mentioned above are available online, so there is no excuse if you have made the decision to be wealthy, start today, effectively managing your risks is a priority.
Historical evidence backs up my belief in residential property, and the longer you can keep a property in our capitalist society the wealthier you will become. However, there are a couple of myths about residential property I would like to clear up.
Myth 1. “Australian Residential House Prices Will Never Fall”
I would like to continue to proliferate that myth, but the facts don’t allow me too. The sad fact is House price’s have fallen in the past and a fluctuation in pricing is just a fact a of life that mortgage holders and property investors, rental property owners have to learn to live with while they make a fortune. When demand is high, prices will rise. If demand is low some prices will continue to rise (Location, location), but on the whole prices will tend to slide, but you will still have the rent. Factors that effect demand like interest rates, job’s, business sentiment, government interfering and population will always be present. The underlying factor that drives my confidence in Australian Residential Property is the simple fact that usable land is a finite resource, especially in our capital cities.
Myth 2. “Any Home Loan Mortgage Will Do”
“Just get me the lowest interest rate. I have found the place I want.” My Mortgage Broker bemoans this statement every time we talk about property investment finance. He generally agrees with the notion that his client has the ability to choose a suitable investment property, but he takes exception with the direction to find the lowest mortgage interest rate. The lowest interest rate home loan does not always match with the clients needs and the ideal mortgage loan for the clients circumstance may need to include features that demand a higher interest rate. So there is always a trade-off between cheap and right or quality. Right and quality should always win, because the property investor should be in it for the long haul, and the quality will last. The cheap will probably need to be replaced. (This is why I like my guy, he tells the truth, except for a recent mortgage for a purchase, my loans are all over five years old. Some mortgage brokers would rather churn your loans every three years and make a fat commission every time.)
So I say anytime is a good time to acquire a residential home or investment property. After all you have made the decision to wealthy haven’t you? Plan to keep it for a generation if you can. Cover yourself with the various insurance’s and estate protection legal device’s. Find a trustworthy mortgage broker mortgage coach, a competent lawyer, conveyancer, accountant, builder, real estate agent, insurance broker, planner, quantity surveyor, mortgage statement checking software and friendly property investment mentor. Get it happening, now!