Bad Time for Property Investment?

Ben appears again in Money Magazine’s Special Edition issue, this time in a Q&A surrounding some hard questions about the current market climate for property investors. With the spotlight on changes to borrowing, Federal Budget restrictions and depreciation claims, a light shadow looms on certain investors. Is it a bad time for property investment?

Here’s a peek into the questions and Ben’s personal opinion:

It has become harder for investors to borrow to buy property. Do you think this will be a continuing challenge?

“If I were looking to invest in property in the short term, I would be factoring in higher borrowing costs to work out if I can comfortably afford to invest now.”

Will the Budget restrictions on Foreign Investors effect the market?

“I personally don’t think the Federal and State revenue-raising initiatives will dampen too much foreign buyer interest into our market place, as the desire to hold property assets in Australia still remains high for our Asian neighbours.”

What impact will Budget changes to depreciation have on the property market?

“Investors who like to buy existing property will now need to factor into their calculations higher holding costs, requiring them to dig a little deeper into their own pockets to maintain cash flow in the early stages of ownership.”

What is the biggest challenge facing property investors?

“Over the past couple of decades property investors have been too successful. So much so that we are getting challenged on so many fronts, such as:

• too many sheep

and

• market intervention.

I do expect there will be some casualties who will learn not all property makes for a good investment.”

 

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