Prepare for risks despite rate cut

By webmaster

While yesterday’s rate cut will be good for investors they should still prepare for risks ahead, a leading property research and investment firm has warned.

The reduction in the official cash rate points to broader macroeconomic issues and buyers should look carefully before using it as a reason to buy, according to Aviate Group managing director Neil Smoli.

“From a buyer sentiment perspective, the second consecutive rate drop will positively impact affordability and preserve what already was an attractive landscape for investors,” Mr Smoli said.

Those in secure employment can benefit from the current economic environment regardless, with price, income levels and rental yields all currently favouring investors.

“The banks, having lowered fixed interest rates in recent times, were already effectively resigned to a downward movement in rates. Astute investors recognised this and this latest rate cut should encourage other prospective investors to become active as well,” he said.

The second consecutive rate cut could be viewed as recognition of potential turmoil ahead.

“More than ever property investors need to ensure they take every precaution to mitigate risk and approach investment opportunities with security front of mind,” said Mr Smoli.

“It would be a mistake to view the downward shift in interest rates as the sole catalyst to pursue a property investment. Extensive research into the many factors that can influence the success of an investment, coupled with detailed macroeconomic analysis as it relates to specific markets and properties is more critical than ever.”

Prepare for risks despite rate cut
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%