New data collated by SQM Research shows vacancy rates across Australia increased by 2.5% in June this year. According to the research, Perth had the largest increase, from 0.3% to 5%. On top of this, rental prices in some states have taken a dive too.
These factors traditionally push investors to sell up. But there is another option, which can improve your cash flow.
Selling an investment property that is not yielding optimal rental returns is a solid strategy. However, there is a very real risk of losing your return on investment; something every smart investor seeks to avoid.
If rental income is inconsistent, or lower than an investor’s mortgage repayments, cash flow becomes an issue. According to Your Investment Property, cash flow is a key issue for many investors, particularly in the current environment.
So what can investors do?
One of the most-straight forward, and often the most overlooked method of improving investor cash flow, is sourcing a more competitive mortgage rate. This is especially the case in today’s property market, as interest rates are at low levels.
As of 5 July, the Reserve Bank of Australia left the cash rate at 1.75%. Many major and minor lenders are passing low interest rates onto consumers, which means competitive mortgage deals are out there.
You just need to know where and how to look.
Securing a more competitive loan is really just a matter of refinancing to a more affordable rate. The difficulty comes in comparing different loans to find one that is more competitive, while still matching your needs.
A mortgage broker takes the hassle out of this process, as they do the research and other legwork, including refinancing paperwork, for you.
For more information on sourcing a more competitive loan for your investment property, please speak with a mortgage broker near you. We compare hundreds of different loan products and pinpoint the perfect one for you.