Watch out for the 3 i’s – inflation, interest rates and investment

[privateproperty]

Investment property still makes up only 20% of the current property market. For 80% of households, owning property is a good forced savings mechanism and rising rates mean homes can get paid of faster by those with the discipline to pay even a little more extra into their bonds. The distressed market is growing with banks seeking to get out of bad loans even by taking a knock on the outstanding capital and offering interest free periods for the balance of debt owed after an auction.

The astute investor knows that cash flow is the core of the property game. While prices rise and fall..income in the form of rentals, tend over time, to be better than inflation. Look to buy higher yielding properties in areas that offer good security and proximity to transport. These are likely to be cash cows as less people have the ability to borrow to buy or the desire due to increasing interest rates.

[zaccolbert]

Good points thanks

[andrew-bradley]

Good advice, I have gained some more understanding