What Economic Downturn?

Our business is going great guns. My husband and I have our own business called Stateland Properties where we find investment properties for people. You’d think that with all the media talk about the ‘economic crisis’ that our business would be going down the proverbial gurgler. Wrong – we’re doing better now than we have in years.
But don’t get me wrong, we’ve been doing it tough for the last four years - investors have been few and far between. But ironically, because of the ‘economic crisis’, the interest rates have dropped dramatically and look like they’ll continue to do so.

This means that you can not only afford to buy an investment property but you can now find lots of ‘cash positive’ properties and better still, brand new ‘cash positive’ properties. ‘Cash positive’ means that the rent you receive from the tenant is more than your repayments to the bank so you end up with money in your pocket. These ‘cash positive’ properties have been almost impossible to find in recent years so now is the best time ever to get into investing. A lot of our past clients have recognised this opportunity and are snapping up the great buys that we’re finding for them.  As well as past clients, we’re also getting lots of new clients who are choosing to ignore the media’s drama queen tactics.

I know the economic situation isn’t good and I have great empathy with the people who’ve been retrenched (I’ve been there before myself). But I think the more we think how bad things are then there definitely will be an economic crisis. If we stop behaving like we’ll all end up on the streets and eating out of garbage bins, then things just mightn’t get as bad.

There are two ways we can look at our world at the moment. We can have a negative attitude – one of doom and gloom and do nothing. We can focus on worrying about a recession (do any of us know what that really is?), increased unemployment and low confidence in spending.

Or, we can focus on what’s impacting positively on our property markets. Such things as;
· A massive undersupply of housing

· Falling interest rates – the lowest for 45 years

· Record low vacancy rates

· High investment yields because of lower costs and

  higher rents, meaning some investments have turned cash flow positive

· Record high population growth

· First Home Owner's Grant

So, we can either do nothing and just wait till the property

market goes up again (by which time it will be too late to find a ‘cash positive’ property) or we can take action now.    

If you’d like Mark or I to explain anything to you just ring us on 1300 557 566 or email us on virginia@statelandproperties.com.au 

Happy property investing!

By Virginia Scott