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Invest Smartly in Australia’s Real Estate

real estate investingThis year real estate investing in Australia is turning out to be exceptionally favorable for experienced and novice investors alike. The success stories of thousands of investors can be attributed to one decision made by Reserve Bank of Australia. This decision led to the drop in official cash rate, which currently stands at 2.25%.

Now willing to invest

Those who were indecisive in the past, especially last year are considering this current cash rate as an eye-opener. Individuals and families that failed to invest in the past as they remained deliberating on the sidelines are now eager to invest and attain financial freedom. In fact, these eager individuals are now seeking guidance and advice from experts and those who have tasted success through investing in the right property at the right time.

Expert opinion

Mr. Mark Bouris, the founder of Wizard Home Loans advises investors to spend adequate time to conduct their independent research and abstain from blindly following property indices. He suggests that every investor should carefully develop his/her personal criteria and follow it under all circumstances. Further building on the importance of research he suggests that one should converse with real estate agents and people who reside in suburbs to be fully equipped with knowledge before investing.

Mr. Bouris adds that currently interest rates are dropping and another reduction is likely to be experienced within a few months. His advice to consumers is to focus solely on what they can control, instead of being concerned with major factors like RBA decisions. Since, two property market components which a majority of individuals can control are purchasing well and affordability of loans; these are factors they should remain focused on.

Affordability

For the first time in around 50 years interest rates have been this low hence, consumers should not miss out on this golden opportunity, even when low interest rates are being offered alongside rising property prices. Considering the 19 % mortgage of yester years these low interest rates are certainly a blessing in disguise.

Interest rates being offered by banks vary greatly, which is why consumers should be cautious while choosing the right lender. At present large banks are offering around 5.6 % interest rates, whereas their minor counterparts are offering around 4.6 % interest rates.

Purchasing well

The decision to purchase well and the ability to do so depend entirely upon individual consumers. Those who do their homework make successful investments hence, to purchase well gaining adequate knowledge is imperative. Making profits this year is exceptionally simple because the RBA has chosen to offer a low interest rate environment.

Make smart choices with care

Whilst attempting to invest in real estate individuals may come across several tempting and often misleading offers hence, they should be extremely careful before actually investing. Pros and cons should be carefully measured in order to ensure financial freedom through real estate investing in Australia. Families and individuals wanting to invest should bear in mind that diligence and knowledge are essential to ensure purchasing a property that proves profitable. Understand and remember that the basics of investing well in real estate are loan affordability and purchasing well, which is precisely what you should concentrate on.