Although painful to our back pockets, rising interest rates are actually a good sign for investors as it means our Australian economy is strengthening and confidence is returning to the market.

In a strong economy, jobs and wages are more secure which allow people to loosen their grip on their money and start spending again e.g.“Now I know my job and income are secure, I feel much more confident in taking on a home loan.”

Instead of battening down the hatches, people now have the confidence and security to consider larger purchases or investments, which is great news for house prices.

Evidence of this returning certainty can be seen in the new car market, where sales have gone up for the first time in over 12 months! Market sentiment has shifted which means property prices are on the rise.

An important factor to remember: as rates rise, the amount you can borrow from the banks or lenders decreases (your serviceability drops). With the economy improving and more interest rate rises on the way, the sooner you take action, the more you will be able to borrow and the better investment you will be able to buy – not to mention the capital growth you will benefit from.

Take action before Christmas. Book in for our final Property Investor Nights for 2009 learn from investors who have already achieved incredible success with their portfolios. You can book your complimentary tickets online or call 1300 365 886.

Book your seat now.

Have a fantastic weekend!

Sam Saggers
Positive Real Estate
Ph: 1300 365 886
Email: info@positiverealestate.com.au
Website: www.positiverealestate.com.au

P.s. Find out more about the Lifetime Mentoring Program and come as a guest to the next Workshop in your state. Read more on the website or call 1300 365 886.    

Some great articles I read this week:

New car sales rebound in October - Sydney Morning Herald

Being smarter about interest rate rises - News.com.au

Property Prices Climb to 6 Year High - Real Estate Business