With the massive hit to our economy from the sheer scale of people being either out of work or onto job-keeper, there is building risk in the property sector, potentially starting with the investor market. investors could be faced with the double whammy - seeing their own income fall, and having to adjust their rental expectations to support their tenant who may also be experience financial hardship.
There is plenty of rhetoric about the "ownership class", and the landlords in this country. But what often gets missed is that most residential investors only own one property. On average 75% of the market are people just like you and me who have used some spare income to buy a negative geared asset with the hope one day it might support their retirement. There are approximately 730,000 self funded retirees who invested in property for the perceived safety - the bricks and mortar effect. Many of these loans are on Interest Only to reduce the cash outflow, and although the investor still makes a loss, it's maybe affordable against their income. Even with interest rates so low this is now still an increased risk - exacerbated by the falling rents and the expectations from tenants that rents should fall further.
So if you are one of these investors, what can you do?Given Interest rates are so low, its worth seeing if you can refinance for the best rate - and to succeed given this environment, you need to find someone you can trust. Thats where brokery can help. Just enter your postcode and the amount you are seeking, and we will provide you the Top3 Mortgage brokers closest to you.
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