The Australian property market is in such an interesting place right now. 

Properties may seem overpriced in light of current economic conditions. Just last weekend a new auction record was set with the sale of a penthouse apartment in Surfer’s Paradise for a whopping $15.25 million. This reinforces the information that we have been providing to our Melbourne and Sydney based followers – that although the apartment market is currently trending flat in those states, there are still great opportunities elsewhere.

This record does raise an interesting question – is property overpriced? And an even better question – should that stop us from investing? To answer that, let’s give the issue of overpricing some context.

In the mid 00’s, interest rates went up to 8% in Australia before the GFC hit. Despite that, properties were at fair market value.

Right now, prices may be up, but interest rates have dropped dramatically.

So the question that you should ask is this: What’s a better deal for you as an investor?

Would you rather buy an investment property at market value and pay 7% or 8% on your loan or buy a slightly more expensive property and pay just 2%?

Buying at market value but with a higher interest rate means that it will cost you more to own that property.

On the other hand, even if the upfront cost is higher now, you won’t have to repay as much to gain equity in the property. In the long run, you’ll save and make more money.

Besides, lower interest rates can help you pay off your loans faster. This means you can have even more buying power and build a larger property portfolio.

People with experience in this niche know what it’s like to take a risk and wait a long time to reap the rewards. That’s why many, myself included, see this time as one of the best times to leverage borrowing to invest in property.

Why not speak to me today to find out more about starting, or expanding, your property investment journey?
If you want help answering these questions, and more, for yourself, then reach out and give me a call at 0403341341.

Looking after your own interests is not an easy task and a burden shared is a burden halved. Michael and the team at IPPA are ready to help you today and you can start with a free 45-minute investment strategy session.