History has been made in Australia with the announcement that 3 of the big 4 banks have dropped their 5 year fixed mortgage rate to the all-time low of 4.99% pa. And news is that other banks are set to follow shortly.
Great news for many property owners – but what does it mean for you and how do you potentially take advantage?
Investing in real estate is ultimately all about long-term capital growth of the underlying asset value and the net yield on a yearly basis. Locking into a low rate fixed payment for 5 years can bring you closer to this goal, with the gap between rental income and mortgage payments narrowing and the ability to pay off further principle on your loan, meaning you are potentially acquiring capital in your asset earlier.
Of course it isn’t as easy as just rushing off and buying a property now just to take advantage of the great rates. Not all properties are created equal and it is really important to select the right property and to gain sound investment advice that will set you on the right path.
If you would like more information about buying the right property, please call our office or register your interest below.