AUTHOR: Ashley Evans
Never in my 32 years in the finance industry have I seen the stars align as they have right now. Between the lowest interest rates in history and the government grants on offer, it has never been a better time to consider purchasing property.
Whether you’re looking to invest in commercial space or considering making the move towards home ownership, the timing is right to take the plunge.
With interest rates so low commercial property is a very attractive proposition. Interest rates likely to be between 3-4% for commercial property at present, whether it is for owner occupiers or investors. People who are leasing their own commercial premises, in the under the million-dollar range are typically paying rent at a six or seven per cent capitalisation rate. With interest rates like to be between 3-4%, even when considering Council rates and insurances, the numbers will likely stack up in your favour to consider buying your own premises. Even from an Investment point of view the numbers are quite attractive as outlined above.
In recent years, with the market so volatile, commercial premises have also taken a hit in price which means it’s a good time to be buying. It’s hard to tell where we’re sitting in the commercial property market, but it’s safe to say it’s an attractive time to consider buying your own property.
The proof is in the pudding, with many AAA+ Financial clients who have recently taken the plunge already seeing the benefits for themselves. In my experience, nine times out of 10 if you take that calculated risk to purchase property, capital gains will be seen in the medium to long-term.
However, it’s not just commercial properties that are attractive purchases now, homeowners and homebuilders are seeing enormous gains when taking advantage of the wide variety of government stimulus that is currently up for grabs.
Between the First Home Buyer Grant $15,000, and First Home Loan Deposit Scheme providing a Government Guarantee of up 15% of the purchase price, assisting to remove the cost of Mortgage insurance (saving potentially of up to $17,000). The Home Builder Grant at $25,000, the Regional Buyer Grant at $5,000, some purchasers are seeing savings of up to $60,000 towards their first home.
While not every grant is going to work for every buyer, it is important to do your research about what is on offer because at the end of the day, every dollar counts.
So, if this is something you’ve been considering but are unsure where to start, come and have a chat with us at AAA+ Financial Solutions https://www.aaafs.com.au/
ABOUT THE AUTHOR: Ash is an experienced lending manager, and agricultural specialist. Originally from Adelaide, he has had the pleasure of working with regional industries across Australia. Specifically, after taking an interest in North and Western Queensland, Ash co-founded the AAA Group and has played a fundamental role in the success of small business in the region. Throughout his 30-year career, Ash continues to cherish his wealth of professional relationships. Naturally, this has fueled his desire to connect remote business owners with the professional assistance they deserve.