Given the unpredictable nature of the past couple of years, this is probably even more relevant for many local families at the moment.

With this in mind, we thought this might be a good opportunity to provide an update for those who may be considering becoming a property investor this year, or perhaps adding to a property portfolio if you have already begun your investment journey.

Securing your long-term financial future with a rental property is a popular choice for many locals, and with rental vacancy rates continuing to tighten and interest rates at record lows, there’s a lot to recommend it at the moment.

On the topic of interest rates, many investors are wondering what the future may hold for mortgage rates. However, with current forecasts suggesting that the Reserve Bank won’t be increasing official rates until 2023-2024, and lenders assessing your repayment ability based on rates that are 3 percentage points higher than current charges, most investors are feeling very confident about their ability to manage their loans.

As far as rental demand goes, the latest data shows that vacancy rates have been falling across the country, and that’s before we see the influx of overseas students and international workers returning to the market. Even rental markets that were hit hardest by the pandemic, such as the apartment market in Melbourne’s CBD, have bounced back markedly with the vacancy rate falling from 14 percent to 4.5 percent.

As is the case in so many forms of investment, the key to success is obtaining experienced advice on what to purchase, then getting experienced people to manage your investment to ensure you maximise your long-term returns while minimising your stress levels in the process. Our team at Barry Plant Frankston is able to assist you in both areas, so if you would like to discuss your plans with people who know the local market intimately, give us a call this week on 9781 3100.

Cheers,

Barry Plant Real Estate

Frankston & Cranbourne