By Michelle Murchison
With so much change over recent months with the global financial markets, there is still much to be optimistic about, provided we look at the other side of the coin.
This is a time of transfer of wealth, knowledge and new opportunities! I firmly believe, and know, that by supporting and helping my clients improve their wealth through strategic finance strategies and mortgage advice, they are truly increasing their prosperity consciousness and developing their natural ability to manifest wealth.
This is not only demonstrated in financial gains, but the lifestyle, mindset and internal belief systems which help them to grow in their own self-confidence and self-belief. And self-confidence, reinforced by sound advice, assessing risk, and then taking action, is what truly creates a prosperous lifestyle in all areas of life.
With the lowest interest rates we've had in many years, well priced properties on the market in great locations, and the First Home Buyers Boost (free money!) still available, there's never been a better time to buy!
Many First Home Buyers have the opportunity to buy their first home with little of their own money, repayments are similar or sometimes less than the rent they've been paying, and its their first strategic step into building wealth!
If every First Home Buyer was to hold their property for the long term (beyond 10 years or more), it is surely one of the easiest ways for them to build wealth passively – by creating equity in the property, over time. And ideally, use that equity and cashflow to buy again, and again…
A timely reminder of a universally accepted investment philosophy... It's time in the market, not timing of the market,
A long-term view is integral to our long-term financial well-being. To take action in spite of the nay-sayers takes courage and self-belief, so it's integral to also surround yourself with positive like-minded people, so you have the support to maintain your convictions. It is also a great time for Investors to consider further expansion of property portfolios!
With rental returns consistently attracting around 4-5% gross yield (sometimes more!) in good growth areas, and interest rates hovering around the same -- most properties could be close to neutrally geared.
With the continued housing shortage in Australia, and a continued demand for rental properties, it is likely that this will retain steady demand on well located properties for the long term.
And yes, while we need to maintain 'buffers' for rainy days, rising rates and unexpected changes – it is easier than you think for contingencies to be factored into most of our circumstances with little or not much effort – with the right lifestyle and mortgage planning advice.
Some key tips to capitalise on:
From an investor's point of view, risk management strategies and buffers are now more important than ever.
And with lenders being more conservative and changing credit policies regularly, there are even more reasons to speak to your mortgage specialist and broker directly so that you have a finance professional working beside you to understand the rapidly changing policy conditions in this dynamic mortgage lending market, and importantly, to continue to give you a broad range of lending options.
By preparing yourself now, smart and prepared first home buyers and investors alike can embrace the opportunities available in the months and years ahead.
Michelle is the owner of Money Advantage.
www.moneyadvantage.com.au
