Cheap money and emerging opportunities

The coalition has been returned to government, albeit with a reduced majority.  Australia continues to offer a stable property investment environment.  And for those who understand current market conditions, property remains a strong source of security and leverage.

If you are considering investing in property, the availability of cheap money presents attractive opportunities to approach your financier to re-balance your loan.  Taking advantage of cheap money can provide additional capital for investment in new growth areas that are emerging in overlooked suburbs.

Key overlooked suburbs are those close to education facilities and have excellent infrastructure and employment.

Low interest rates are good for current borrowers, but, not so good for cash and fixed-interest investors.   Amid ongoing global uncertainty, finance markets have been impacted by many volatile forces, including restructuring around Brexit.

Australia’s need to rebalance its economy is making investors less willing to take on this kind of risk, so investment-grade properties are becoming a more secure alternative.  Although these properties are becoming harder to find, they can be found.

 

Until next week,

Jock Bing