Invest now but be cautious: PIPA
Investors should take advantage of current market conditions as they are ripe with some of the best investment opportunities seen in years, according to the Property Investment Professionals of Australia (PIPA).
PIPA chair, Ben Kingsley, said it was undeniable that the opportunity for investment in property was incredibly attractive.
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“Another rate cut this month has brought the cash rate down to a historic low of 2.5 per cent and home loan interest rates have hit very alluring levels as a result,” he said.
“For investors, this translates into lower costs and better returns and for aspiring investors, it could mean that all important first purchase is now a very real possibility."
The cost of borrowing money is cheaper for investors now as current fixed rate home loans are at historic levels, Mr Kingsley said.
“A fixed rate is a popular choice for investors who want cash flow that doesn’t ebb and flow, and right now we are in the rare position of seeing fixed rate products with rates of interest lower than variable rate products,” he said.
Mr Kingsley urged investors to consider a purchase now before the opportunity disappeared.
At the same time, he warned that investors needed to be cautious of property spruikers who were looking to prosper at the expense of innocent consumers.
“Investors must be cautious to check the credentials of any person or company offering properties for sale or providing property investment advice," he said.
“In particular, investors must remember to differentiate between advisers and marketers and remember not to listen to everything a sales person tells you – they are after all, trying to sell you property.”