Sep 30, 2019
Are you enjoying the low-interest rates at the moment?
They’re likely to get lower over the next year or so, and remain lower for a decade or longer. But what does this mean for property investors?
What are the implications for property and other asset classes? What does it mean for your returns?
How should you invest differently over the coming years?
These are all important questions for people who want to become successful property investors. I’ll be discussing these questions with Pete Wargent in this episode.
I’ll also share a mindset moment about where you’re going to be in ten year’s time.
I learned this lesson from one of my mentors, and I hope it helps you in the process of planning your future and getting the most out of your life.
How does a low-interest-rate environment affect your investment strategy?
The Reserve Bank has cut interest rates in 2 consecutive months – June and July to historic low rates and the money markets are factoring in two more interest rate cuts one later this year and another in the first half of 2020.
And it’s likely we’re in for a long period of low-interest rates moving forward.
So, what does this mean for property investors?
It’s not just Australia that has low-interest rates – why is this happening?
What’s going to happen to interest rates?
Will low interest rates have the desired effect?
Now we’re talking about the official cash rate - - home mortgage interest rates are higher – what will happen to those?
What does this mean for investors, especially those that borrow to invest in property?
A low interest rate environment makes borrowing/leverage a sensible investment strategy
What will low interest costs do for property values and for rentals?
The bottom line
Correct asset selection will be critical – only own “investment grade” properties that will remain in continual strong demand by a wide range of owner-occupiers
Links and Resources:
Metropole’s Strategic Property Plan – to help both beginning and experienced investors
If you’re interested in taking your property investing to the next level, join us at my annual Property Renovations and Development workshop in October.
view the full show notes at the episode webpage: Investing differently in a low interest rate environment
Some of our favourite quotes from the show:
“The key is to look and say where am I? What could I do to make the changes to ensure that I could take more certain daily steps towards the treasure that I want?” – Michael Yardney
“It doesn’t make sense to use your own money, not to borrow, if you can achieve a better investment return with a mortgage.” – Michael Yardney
“The rich don’t like to commute.” –Michael Yardney
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