WHAT IS UNDERINSURANCE?

The Australian property market continues to show promising signs for investors, particularly in cities like Melbourne and Sydney. With insightful forecasts and strategic options available, now is an opportune time for property investors to take action.

The team at Inovayt, our preferred finance partner, takes us on a deep dive into the opportunities available for those currently holding investment property assets, emphasising that it isn’t all doom and gloom:

STRONG GROWTH PROJECTIONS

According to Oxford Economics Australia, the median house price in Melbourne is projected to grow by 21% over the next three years. This growth is set to outpace Sydney’s forecasted increase of 18%.

Melbourne’s robust population growth, ongoing infrastructure development, and increasing demand for housing contribute to this positive outlook.

Investors who act now may benefit significantly from capital appreciation as the market continues to heat up.

DESIRABLE RENTAL YIELDS

In addition to capital growth, Melbourne’s rental market is becoming increasingly attractive. Desirable rental yields allow investors to secure a steady income stream, making property investments even more lucrative.

With current market conditions favouring rental increases, savvy investors can also explore opportunities to renegotiate more competitive interest rates on their existing mortgages, enhancing their cash flow and overall return on investment.

FINANCIAL FLEXIBILITY THROUGH EQUITY ACCESS

For investors facing cash flow constraints, there are several strategies to consider before opting to sell. Accessing equity in your property can provide a vital cash buffer, allowing you to maintain your investment during challenging times. This equity can cover maintenance costs or consolidate personal debts, such as credit cards and car loans, alleviating financial pressure while keeping your property assets intact.

CONSIDER PAYMENT STRUCTURE ADJUSTMENTS

Switching from Principal and Interest (P&I) repayments to Interest-Only payments can lead to significant monthly savings. For many investors, this adjustment can free up hundreds of dollars each month, enhancing cash flow and providing more flexibility in managing expenses.

This strategy is particularly beneficial for those looking to invest further while keeping current investments.

EXPANDING YOUR INVESTMENT PORTFOLIO

For those seeking to expand their property portfolio, leveraging property equity can be a powerful tool. This equity acts as a vehicle for purchasing additional properties, allowing investors to scale their portfolios and capitalize on the current growth trajectory in the market.

With proper planning and strategy, seasoned investors can take significant steps toward building a more robust investment profile.

RENTVESTING

Fast becoming a popular form of property investment for those looking to enter the market sooner, rentvesting allows people to live where they want to live and buy something that is within their budget, typically regionally amongst first-time buyers.

Buyers looking to rentvest can receive the benefit of higher yields to help offset some of the costs of rent, while potentially seeing the gains of capital growth to help kickstart their next property acquisition.

CONCLUSION

The Australian property market, particularly in Melbourne, presents numerous opportunities for investors. With positive growth projections, attractive rental yields, and flexible financial strategies available, now is the time to capitalise.

By leveraging equity, adjusting repayment structures, and having a clear strategy for expansion or downsizing, investors can navigate the current landscape effectively and enhance their portfolios for the future.

If you’re interested in speaking with a finance experts to assist with your position, you can get in contact with Inovayt Finance.

Alternatively, you can talk to your Barry Plant property manager who can put you in the right direction.

Disclaimer: Whilst we took every care in preparing this article, Barry Plant Group accepts no responsibility for any errors or omissions. Individuals are directed to rely on their own enquiries when making investment or finance decisions.