Mon, 2008-03-03 07:47 — Guest
Property Investors Advised to Hold Property - Not to sell due to current Australian interest rates.
Property investors should stick to their long-term plans and avoid panic selling in the current environment of rising interest rates, property research firm Braxton Chase says.
The Reserve Bank lifted Australia’s official cash rate to 7.25 per cent this week, the highest it’s been in almost 12 years.
“Residential property investors are too often spooked by stories of doom and gloom that invariably go with rising interest rates,” Braxton Chase chief executive Andrew Donnelly says.
“The psychological stigma of rising rates often leads to knee-jerk decisions to abandon good property investments that may deliver outstanding yields and capital growth over the long term.
“There is absolutely nothing odd about interest rates going up, just as there’s nothing abnormal about them coming down. Rate movements are part of the very predictable mechanics of property investment and something that should be factored in to any property investment strategy.
“By all means cut your losses and run if it’s abundantly clear that too many variables are working against you but avoid selling decisions based on singular factors such as rising interest rates and populist negative sentiments that may go with that.”
The keys to successful property investment is good research, Donnelly says, along with a plan factoring in multiple variables.
“You only have to look at the multitudes of property investors reaping rewards right now to know that the sky is not falling in,” he says.