Tuesday, August 23rd, 2011 - infolio
The areas that are most are most likely to suffer ahead of an interest rate rise are suburbs that have been popular amongst first home buyers. These are also often the areas that experience a high number of foreclosures when interest rates rise.

Seeing “foreclosure” signs on properties often triggers a response of fear amongst first time buyers. A small increase in the number of foreclosures can often send a number of other people in the area rushing to sell their property.

For investors with existing properties, the influence that a rise in interest rates has is not significant. In fact, when interest rates rise, it becomes more difficult for buyers to enter the market. As a resort they continue to rent until they can afford to buy.

Any money investors lose through an interest rate rise can be recouped by increasing the price of your rental property when the lease expires.

As a result, the safest areas to invest are those that are most popular amongst renters. The biggest rental hotspots include South Yarra, Prahran, South Melbourne, Elwood and East Melbourne.

“Property is a long term investment, to ensure a healthy level of capital growth and return on investment, it’s much more safe to invest in areas that aren’t as susceptible to volatile interest rates and fluctuating house prices,” says Lauren Staley

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The infolio team are buyer advocates, and Melbourne property market experts. We provide our clients with a professional and independent advisory service that not only assists them in buying a residential property in Melbourne, but also in selling or leasing a property.
Tegan Hammett
P: 9642 4107
W: www.infolio.com.au

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infolio, buyers advocates melbourne, lauren staley, property buyers melbourne, property investment melbourne

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