What a fantastic time it is to buy an investment property!
Tomorrow is the first Tuesday of the new month of August and we must all appreciate what a fantastic time it is to buy an investment property. So why should it be such a fantastic time to buy an investment property? Well, it looks like interest rates will drop again buy even if they don’t drop this time, many of the major lenders have already dropped their fixed rates in preparation for an expected cut this month with probably another before Christmas.
High Yields and very low mortgage costs result in positively geared investment property.
Many banks slashed interest rates for the most popular type of fixed-rate home loan in July, as markets bet the Reserve Bank will act to stimulate the economy this Tuesday. New figures from the comparison website RateCity show as many as 18 lenders cut three-year fixed rates in July, across 112 loan products. Fixed mortgage rates are influenced by financial market expectations for official interest rates, and there is a widespread view the RBA will soon take the cash rate to a new record low.
The average reduction in three-year fixed rates during July was 0.19 percentage points, with lenders including National Australia Bank, ANZ Bank, ING Direct, HSBC and Suncorp among those to have cut. The cuts were occurring in anticipation of the RBA dropping the cash rate from 1.75 per cent to a new record low of 1.5 per cent.
The ANZ Bank slashed 0.44 percentage points off its three-year rate for owner-occupiers to 3.85 per cent; NAB cut its three-year rate to 3.89 per cent while the lowest rate on offer was 3.67 per cent from Mortgage House.
With fixed rates of under 4% on offer and property yields of over 5% still possible in the right market place, it is almost certain that most property investors would be looking at positively geared property after tax, meaning that most potential investors can now buy a new investment property which would be costing their normal weekly cash flow absolutely nothing!
It is a fantastic time it is to be buying an investment property, give Lime a call to find out more! Read more: http://goo.gl/g6f9oa
