During periods of rising interest rates it is first time buyers who are affected the most. We have already seen some evidence of interest rates affecting demand in the first home buyer segment. As a result this causes the balance of supply and demand to swing in favor of buyers once more as there is now less competition. This leaves the door open for investors to buy quality property close to our cities for a discount they wouldn’t have seen six to twelve months ago.
When it comes to making money in property, there are two current philosophies property millionaires use. Some use high rental returns to achieve positive cash flow, while others advocate you should invest for capital growth.
The 2011 Brisbane floods have affected thousands of people, which will not be soon forgotten. We will certainly see some short term effects that will negatively affect property prices and even rental returns in flood prone areas.
Property has been the number one backbone of wealth for many families and individuals. Just take a look at the Forbes Rich List and you will see the number of millionaires and billionaires who have helped build their empires with property. It is amazing to see the biggest source of wealth is land, whether used for real estate, wine or commodities.
The average investor simply cannot invest in a handful of random investments, ignore them, and expect to do well in 2011 and going forward. With the state of the financial world today it’s important you keep up-to-date with economic events here and overseas and maintain an active role in your investments whether it is property, the stock market or commodities.
Meet Justin |
 Justin Wood is the director of Property Toolbox Australia, a successful investor and a leading expert in wealth creation through property, businesses and commodities. |
Meet Lillian |
 Lillian is a successful property investor and business owner with over 7 years experience in the banking and finance industry. |
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