Lower Interest Rates Highlight Investment Opportunities
The announcement of a reduced official cash rate may encourage property investment in Australia, as the potential for favourable borrowing conditions becomes apparent.
The new rate of 3.5 per cent put into effect by the Reserve Bank of Australia (RBA) today (June 6) will likely transfer in part to consumers as lenders re-evaluate their rates.
Those considering an investment venture may wish to speak to their local mortgage broker about how to best take advantage of the situation.
To get started, it is advisable to evaluate finances to determine borrowing power.
You should then calculate borrowing fees and application costs to measure the relative gain of undertaking a property investment venture.
If you have existing property, you may be able to use built-up equity to make another purchase.
Depending on your investment goals, there are a variety of loan types you may wish to take on, including line of credit or separate loans for each property.
A chat with your mortgage broker can help to eliminate time-consuming research and give you the target answers you are looking for.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.