Property investment to remain solid in 2017

BANKSTOWN, Australia - Aug. 8, 2017 - PRLog -- There are several reasons why I think property investment will remain astute this year. First, it is speculated that the interest rates in the United States will increase.

Banks in Australia have started to raise their rates regardless of the RBA and Australia's cash rate remaining low at 1.5% as of 31 January. Suppose the rates increased with the predicted U.S. rates in the next 12 months, these will still be relatively low at the end of 2017.

Several property developers have said that pent-up demand is still strong despite price growth slowing down.

However, Australia's marketplace is wide and diverse and it is important to remember that conditions may vary among capital cities and regional areas. Banks have also tightened lending, making it harder for smaller property developers to raise funds for projects. This could mean less development and housing projects in the next few years.

Banks still believe that residential property is a solid long term investment, often lending 80% of the property's price.

The mortgage investment sector is competitive that investors are able to negotiate rates. There are more choices in terms of interest rates, products, and banks, that are always ready to lend against property.

Imposts also make property a long-term opportunity.

Properties can double in value with a 10% return (7% capital growth and 3% rental return) over a 10-year period. The government will also not change its Negative Gearing legislation for the next few years so property investors can still take advantage of the tax savings.

PS.

Investors should remember that properties work in cycles and while there may be capital gain, sometimes they may also experience little, zero, or negative growth over the years of their investment journey. For more information about property investment in Australia, contact a Specialist (http://www.chan-naylor.com.au/contact-us/?utm_source=dire...)  to discuss your particular circumstances.

For more tips and advice from other industry experts, visit www.chan-naylor.com.au

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Source (https://www.ljhooker.com.au/blog/latest-blog/january-2017/i-think-property-is-an-astute-investment-in-2017)