Would you like an investment property with that?

What does $250 per week mean to you?

30 take away lunches?
71 cups of coffee?
3 pairs of shoes?
37 trashy magazines?

Or would you like an investment property with that?

Since winter 2008 we have seen interest rates drop to levels not seen for over 40 years. This time last year, variable interest rates were published at 9.45%. On the average loan (see table below), this equates to a saving of around $1,000 per month. Yes, the average Australian household mortgage is now approximately $1,000 per month less than it was a year ago (for those on variable rates).

Loan Table

Location	Average Loan
Australia	$339,407
NSW	$398,842
QLD	$322,887
SA	$288,037
VIC	$293,364
WA	$372,320

What have YOU done with your $1,000 per month???

If you had continued to pay your loan down at the same amount each month, you would be saving around 10 years and $100,000 over the life of your loan. Congratulations!

If you reduced your repayments in line with the interest rate reductions, how has the extra cash been working for you? Could you have been working it harder?

Are you aware how little it costs to start your very own investment property portfolio?

For as little as $127.00* per week from your own pocket, you could start your wealth creation strategy with a $400,000 tenanted investment property.

With low interest rates and relatively strong rental returns (some states are now seeing up to 5% rental yields), this is the ideal time to consider entering the investment property market.

Tips for your research:

Generally, when looking for an investment property, look for an area that:

Has consistently achieved strong capital growth.
Has a high rental population (for example government sites or universities).
Has easy access to amenities such as shopping, schools, transport and hospitals.
Is reasonably close to major centres (city or larger towns if regional areas).

One or more of these factors make the property more attractive to renters (and lenders in terms of securing the loan against the property).

Based on the current interest rates and property market, positively geared property investment may also be a possibility.

For more information on negative versus positive geared investment strategies, call the office today.

(*NB: These calculations have been based on a 10 year old property with a purchase price of $400,000 at an interest rate of 5.5% and an annual salary of $65,000. Newer properties typically attract higher tax deductions and may make your contributions even smaller. Please call the office to discuss your situation in more detail as these figures are estimates only.)