Investors still relying on property

Yes, the picture for people wanting to secure their long-term financial future by becoming property investors did change when the Australian Prudential Regulation Authority began taking steps to make life more difficult for investors, particularly by forcing the Big 4 Banks to tighten their lending policies for investors.

However, that tightening of the purse strings has since been eased, and we are now seeing Banks becoming far more approachable when it comes to approving interest only loans, so the outlook there seems quite positive.

The other issue that has caused concerns for some investors is the threat by the ALP to change the rules affecting negative gearing if they are elected in next week’s federal election. However, the smart money has already realised that IF that were to happen, it would not affect those investors that have already secured an investment property before the rules change, which would be unlikely to occur until 2020 at the earliest. So that uncertainty is actually an additional reason to become an investor now!

We were reminded of all this during the marketing of one-bedroom apartment in Thornbury, (pictured), which drew strong interest from a mix of first home buyers and investors. Located just a stone’s throw from the vibrant shopping and cafe precinct of Thornbury Village, this property had plenty to offer an owner occupier or tenants, so it was no surprise to see it successfully sold after a strong mid-week offer was made by an astute investor.

As is always the case, our advice to investors is that you can never do too much research. So if you would like some assistance in finding a suitable property, or would like to know more about the difference that our award-winning Property management team can make to your property once you’ve secured it, feel free to give the team at Barry Plant Inner-North a call.