This quote by Sun Tzu from ‘The Art of War’ is true in so many realms of our lives, not the least when we are talking about our personal wealth.
The key to weathering the economic chaos is to find the opportunity within it.
There is no doubt that change is the only constant in our lives and this is true for the economic climate in which we live. Interest rates are at their lowest point on record and the much publicised housing bubble is causing nervousness and housing prices to rise.
But it is also opened the way for a new batch of first time property investors.
Increased equity in the family home has given rise to many novice investors looking to take advantage of the current situation and build wealth through property.
But there are many things to consider before jumping into the property investment game boots and all.
Firstly, where does it sit in terms of your long term financial strategy?
Borrowing against the equity in your family home is a great way to fund the deposit for your investment property but don’t forget to think about the extra’s such as legal fees and stamp duties. Depending on where you are in terms of your lifestyle and future plans, it is important to also consider here the long term commitment to this investment and how quickly you are likely to see a return.
It is also essential that you have the right investment loan and there are a number of options to navigate – interest only loans, interest and principle loans, and loans where the interest can be paid in advance.
And how do you maximise the benefit of your investment property? – capital gain or rental income? This will depend on what stage of life you are in…if you are looking for a long term investment option or a quicker return.
With interest rates so low there is no doubt that investing in property looks like an attractive option, but putting getting some sound advice and implementing a well- rounded financial strategy is essential to long term goal setting and financial security.
If you would like to find out more about the opportunities that lie ahead for you, call Andrew Rowan on 5331 6550 or email [email protected]