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Can You Afford To Buy An Investment Property?

affordable investment property melbourne

On the back of the banking royal commission, there have been changes to interest rates and borrowing options, especially for investors.

The recent housing boom was driven by a series of rate reductions from November 2011 when the reserve bank reduced Australia’s cash rate from 4.75% to 4.5%. Since then, the RBA has continued to drop the interest rate and the housing boom meant more opportunity for investors.

As the market has lost its buoyancy and following the exposure of the major lenders throughout the Hayne Royal Commission, banks have become more considered in their lending practices, and the property market is starting to level out. This makes it a good time for those with the funds and borrowing capacity to invest.

Since March 2019, 25 lenders have made changes to interest rates on a number of products most of which have been a lowering of up to 25 basis points or ¼ of 1% for both investors and owner occupiers.

The lowering of fixed rate loans with both principal and interest repayments and interest only repayments has meant investment could now be more available to you. In recent times it has been far more expensive to access interest only loans but these most recent moves mean the interest rates on offer for those interest only loans have come down, especially if you have negotiated a fixed rate loan with your lender. 
 
There may some benefit for you to review any existing loans and ensure you are not paying too much. More importantly, given these changes in interest rates, it may be even more affordable to invest in the property market than it has been previously. 
 
What does this mean for you? Is it easier to borrow to invest now? In short, yes. The market is dropping, and it is a buyer’s market. Some key indication suburbs across major capital cities have seen a price downturn in some cases of 10-15% across the last 12 months alone.

Banks may be more cautious in lending to buy an investment property. There is a lot to take in, but it is well worth investigating, particularly if you have some equity in your current home and want to capitalise on it while the market is right.

We can help you wade through the noise, find the right product for you and advise you through the process of borrowing to invest in a volatile market.

It might be the smartest call you make this year.

To find out more, Get in touch with Opulent Finance on 03 8838 8726

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Siraj Ahmed
Siraj Ahmed
2020-11-18
Verified review
Excellent service. Got us a great loan option and also worked with the bank to get the loan approved during the heights of COVID.
Dhruv Satra
Dhruv Satra
2020-11-18
Verified review
Malaka Ekanayake
Malaka Ekanayake
2020-11-10
Verified review
We have had a very pleasant experience working with Opulent Finance. We did not have that much experience with house loans as we were first home buyers but working with Opulent  Finance team specially with Ishara, made that experience stress free one. She helped us secure an incredibly competitive interest rate and offered her guidance so we can take advantage of the future interest rate drop. Thank you Ishara, Dayan and team for your incredible support and we have no hesitation what so ever in recommending Opulent Finance for your financial needs
Uma Gunaratne
Uma Gunaratne
2020-11-04
Verified review
Ishara is highly knowledgeable and if you are a first home buyer and new to the intricacies of all that home loans entail, she will really take you under her wing and impart her knowledge and experience and treat you as one of her own. She is also extremely patient but will also be very truthful and upfront in situations which is honestly what you need. She did a very complicated loan for us, and was so incredible efficient and organised with all the paperwork that was required. Not only that, she helped us secure an incredibly competitive interest rate! Ishara has probably spent hours and hours explaining to me details and giving me really good guidance through this momentous period in life! During the cooling off period and settlement, she was constantly chasing up our loan and honestly took a personal interest in the outcome. Our solicitor was also very happy about working with Ishara as she was following the entire process, was always up to date and very easy to work with. Considering that our entire process happened during the covid-19 lock-down and work from home environment, we have nothing but good things to say about how professional Ishara was as she didn't let a single thing slip. We are so glad that we have both Ishara and Dayan in our corner. We will definitely be using them for all future financing needs. Thank you Ishara, Dayan and team!
Harsha Ill
Harsha Ill
2020-10-11
Verified review
Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.
S P
S P
2020-09-22
Verified review
I have been dealing with Ishara at Opulent Finance for over 6 months now and she has been faultless. She has helped me secure a loan pre-approval in no time and assisted me with my property purchases. I could not recommend Ishara highly enough.
Afshin Koohestani
Afshin Koohestani
2020-09-22
Verified review
Good service and offers.
Janaka Kumara
Janaka Kumara
2020-08-22
Verified review
A big shout out to Dayan and his team for the seamless service provided during the refinancing process. Thoroughly professional team that pays attention to every detail and has been extremely transparent throughout the process. A team that always has the best interest of clients in mind and makes all efforts to provide the right advise and outcomes to the clients. Highly recommended!
Rakesh Mistry
Rakesh Mistry
2020-08-19
Verified review
They called me back with solution
Indra Jaya
Indra Jaya
2020-08-12
Verified review