Very Interesting

Official interest rates stayed level at 2% again this week and look like staying low for some time (or even falling further). This is indeed very interesting if you own an investment property.

Interest rate percentage

Interest rates stay low

Many people think the property market is controlled by interest rates but recently we have seen Sydney post negative growth while Brisbane is going ahead steadily. There is clearly more going on here.

Supply and demand ultimately control any market and property is no different. Sure, things like interest rates, employment, business growth and even politics all affect the market but it’s not one factor alone.

The Sydney market has topped and pulled back in recent months so southern buyers are increasingly looking at SE Qld. Properties around Brisbane and the Sunshine Coast are relatively cheap with good rental returns and continuing capital growth. At Investment Property HQ we have some dual occupancy houses in strong growth areas of Brisbane with over 6.5% rental return so this pays the mortgage and then some!

Want to know if you can grab an investment property and let the tenants pay if off for you? Find out now. We’ll let you know what you can borrow and afford to buy. Then make an informed decision.

Pim Stort has well over 20 years experience as a professional investment adviser. Now he’s available at to help you determine what you can do to improve your financial standing. No cost and no obligation at all. Take advantage of this offer now and give Pim a call on 0412 542 316 anytime 7 days or contact us at iphq.com.au. Take the step because no one else will take it for you!

Bubble Schmubble

Is There a Property Bubble?

Is There a Property Bubble?

There has been some recent talk of a property bubble by a few property commentators (and journalists).

Firstly, many of these commentators live in Sydney which has experienced strong property price growth. The word “bubble” is more likely being used to create sensationalism to sell newspapers and magazines. There most certainly is no bubble but lets look at the facts.

Sydney had come off a prolonged flat period so was playing catch up. It also has a strong economy and actually has a shortage of housing for it’s growing population. Certainly low interest rates help promote demand and therefore price growth, but this factor is the same across Australia.

What the word “bubble” is referring to in this instance, is the normal situation in an expansionary phase of the property cycle where prices rise strongly and then usually pull back slightly when the upswing is over.  Sydney has had nearly 14% median price growth over the past year and about 39% since it’s low in 2012. This is great if you own property and looks to be continuing but at a slower pace for another year or two. You should expect to see a 5% or even 10% pull back in prices when interest rates start to increase again. Hardly a bubble bursting but a necessary evil.

For example, Darwin enjoyed over 17% price growth since mid 2012 but has fallen 0.8% in the past year to March 2015. We’ve also seen Perth and Hobart fall but by less than half a percent. This is simply the nature of all markets driven by supply and demand.

The idea is not to buy in at the very end of the upturn as you might have to wait quite a few years before the next recovery begins. At Investment Property HQ we look into where a region is currently placed on the property cycle to determine if it should be considered for investment. It’s one of the many factors we research to determine which are good properties to suggest to our investors. If you’d like to benefit from our experience then contact us using the form at right or at iphq.com.au or give us a call anytime on 1800 767 332.