Catch 22 for investors

Buyers who choose to wait and see what interest rates do could see their borrowing capacity reduce…substantially...

I have recently been speaking to a number of first time investors who tell me that they are just going to wait and see what happens with property prices, interest rates, etc. however there is a catch to doing that.

As interest rates go up, and we know they will go up another % or 2, investors borrowing capacity in real terms goes down. So waiting to see what happens actually means some investors are unknowingly excluding themselves from the market.

An example for an average potential investor:
- A 1% interest rate increase can reduce borrowing capacity by about $100,000
- A 2% rise more like $200,000
With numbers like this, it demonstrates that the decision to wait for the inevitable interest rate rises may stop you from becoming a property investor.

Why Interest Rate Rises Are Good For Investors

Lenders are not going to let anyone borrow above their ability to repay the loan so that is not an issue.

Of course no-one wants to feel they are buying at the top of the market but remember it’s more about TIME IN THE MARKET rather than timing the market. Even waiting 12 months may mean potential investors will never be able to realise that investment property dream.

Investors who are looking to buy in an area like the Sunshine Coast where there is still a steady increase in the population of around 9%, then they are buying into a market that will not go down as it’s supply and demand which creates growth. Also, the reality is that as of 1st August, Australia-wide, property prices have only dropped less than 0.5%.

So if you’ve been thinking of investing but hanging back to see what happens, I would encourage you to at least look at what your options are now, check out all the financial benefits, risks, and costs, then you are financially informed and can decide what to do - it costs nothing to check out your options.

You know how to contact me should you want to discuss in more detail or want a free no obligation financial consultation.

QLD's newest growth hub

I mentioned a new property investment opportunity at Caboolture in my last email and have had several enquiries.  Many people were curious about the new location's great opportunity for growth so I thought I'd share some more information with you here today.

Caboolture Image 1Caboolture Image 2

Caboolture is located just 50 minutes north of the Brisbane CBD and is rapidly growing as a connective hub between Brisbane and the Sunshine Coast.

The list of infrastructure developments for Caboolture is extensive and includes a new highway running parallel to the Bruce Highway, a $399.5 million project to redevelop the Caboolture Hospital plus a TAFE, 3 high schools, 9 primary schools and super rapid transit to Caboolture Central. Coupled with the news of the Brisbane Olympics in 2032, Caboolture has enormous opportunity for growth.

Central Springs Estate Image 1Central Springs Estate Image 2

The new Central Springs Estate covers more than 160 hectares of land in Caboolture. It's a community set in natural surroundings, featuring green spaces and recreational areas, as well as an expansive, 4-hectare lake.

Dwyer Property Investments has now secured 2 lots in Central Springs Estate which are perfect for both the Liana and the Benson 4-bedroom properties.

Above: New Benson Property in Caboolture

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Above: New Liana Property in Caboolture

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Both property options are totally rent-ready with nothing more to pay and have 4 bedrooms, 2 bathrooms, and double garages on large 450m2 lots.

Click here for the full list of deluxe inclusions.

If you're interested in taking advantage of Caboolture's growth opportunity, click the button below for a free, no-obligation financial consultation or give me a call on 1800 088 437.

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Don't wait to invest. Invest, then wait.

Don't let the scaremongers distract you

Interest rates, inflation, rent prices... You can't go a minute without seeing another doom and gloom property story in the media right now.

Don't let the scaremongering distract you from your long-term investment opportunity.

Property investing has never been a get-rich-quick scheme. I believe wealth creation through property is a long-term, well-thought-out plan and is not impacted by short-term market fluctuations.

While everyone else is panicking, you should be thinking about how to capitalise on the new property market conditions for the long term.

20-20 VISION

I've always said you shouldn't invest in the "now". You should invest where you want to be in 20 years.

Property investment is a long-term game, and the sooner you get in and the more time you have in the market, the more opportunity for capital growth.

Investors with a long-term strategy aren't worried by short-term market fluctuations. They know that the only way to come out on top is to ride the ups and downs to a financially secure future.

The best time for you to invest was actually 20 years ago. And 20 years from now, we'll be saying the same thing.

WILL THE MARKET CRASH?

The property market is bound to see corrections in some locations but it is important to remember that these properties have seen 20%, 30% and in some cases, 40% growth in the past 2 years!  Frankly, they need to be corrected, but I doubt we will see a "crash".

It’s an adjustment to counteract those ridiculously unsustainable growth figures.  And even IF, as the media are saying property prices do drop 10%, on the back of 20% to 40% growth, that's still a fantastic result.

BAD NEWS MAKES GOOD HEADLINES

Journalists will always jump on a bad news story because short-term panic sells newspapers. There's just no clickbait in stable long-term property growth stories.

Every time I pick up the paper, I find it funny that the experts who are predicting a property crash today are the same people who predicted a 30% crash 2 years ago.

My advice is to talk to an expert you trust and ignore the media frenzy.

 

At Dwyer Property Investments we've been through all this before. For 37 years we've been helping people like you navigate through these changes and create strategic long-term investments that beat the market as it rises and falls.

Email me here and we can help you find the right investment for your situation. Or perhaps you're interested in our no-obligation investment consultation.  Book here:

Especially in times like this - Don't wait to invest. Invest, then wait.