Property investors now borrowing $9 billion each month

Stable interest rates which are at record low levels is encouraging a property investment boom as highlighted by the latest ABS figures on home lending.

During March 2014, individuals throughout Australia borrowed a massive $9.0 billion to purchase established homes for investment purposes.
This represents a jump of nearly $2 billion compared to March 2013 when $7.1 billion was borrowed by property investors.

Stable interest rates are giving confidence to investors to purchase property and this trend is likely to continue for some time.

The RBA decided to keep interest rates on hold at 2.5% for the 9th successive month following its board meeting earlier this week and indicated that interest rates would be kept at this level for the foreseeable future.

Historically, the expectations about interest movements play a key role in investor confidence.

For example, if investors believe that interest rates are going to rise strongly, then they will be less likely to buy investment properties.

With interest rates now steady and at very low levels, the coming financial year should see even more investors enter the property market.

For first time investors, it is important that they maximize their cash flow through claiming all their tax depreciation benefits.

Through claiming these tax depreciation benefits, they can quickly build a property portfolio and create personal wealth.

The cost of this tax depreciation schedule can be as little as $600 (which is tax deductible) even though the cash flow benefits it can deliver each year may be several thousand dollars for each property.

About Paul Bennion

Paul Bennion is the managing director of DEPPRO tax depreciation specialists.

DEPPRO Pty Ltd is Australia’s leading property depreciation company, specialising solely in the preparation of tax depreciation reports for residential, commercial, industrial and leisure investment properties.