A lot of interesting changes have been taking place in our market place. For example, RBA has reduced the cash rate to a record low at 1.5%… whileas major banks are actually starting to raise rate for property investment loans…
At the same time, foreign buyers are pretty much screwed. Not only no bank is willing to lend to them, but also cost of purchasing Australia properties skyrocketed.
Craziness didn’t stop there. Victoria state government just announced that they will abolish the stamp duty for 1st home buyers (whose purchase price is under $600k) while at the same time they also announced that stamp duty concession for buying off-the-plan will no longer be available.
All of a sudden people start panicing, negative news are all over the place and chicken littles start crying and saying “the skies are going fall again”.
Anyway, in case you are not sure where we are heading towards in terms of property market, here’s my intake: We are heading into one of the greatest boom Australian has never experienced before. I will explain the reason why in future blog post. It’s something related to population growth, global monetary policy and future supply of new housing. You know, fundamental stuff, nothing too complex.
For now, if you are a bit uncertain of what you should do next in your property investment journey, here’s the video I just made for you. It shows you a simple 3 step formula of achieving financial freedom via the vehicle of property.
P.S. If you are considering fixing your interest rate, now is a good time to do it.
P.P.S. Australia property market is fundamentally sound. But the current market sentiment is quite low. Great opportunities lie ahead for those who are prepared both intellectually and financially.