Right now, in Australia, we are experiencing a record low in interest rates – meaning cash is cheap and it’s a great time to borrow and invest.

But it’s unlikely to last. In fact, it’s not a matter of if more than it is when…

Smart property investors know that it’s dangerous to get too comfortable. Real estate is an ever-changing thing. Markets go up, down and plateau – and so do interest rates.

The question is, how prepared are you for a sudden spike?



The key to being ready is having a strategy.

Before you spend a single cent on property, you should first devise a long-term plan that takes into account:

  • Changing interest-rates
  • Changes in capital growth
  • Emergencies
  • Changes in personal circumstance

Let’s be clear. 

While a clever strategy considers and plans for all of the above, the end-game itself is NEVER influenced by any of these changing factors. Instead, because these variables are anticipated and accounted for, investors can remain focused and unphased by market distractions or disturbances.



If you’ve invested or held property in Australia in the past 12 months you’ve probably locked in some low-interest rates. 

Hopefully your rent rates are healthy and you’re in a positive cash flow situation, with more money coming in from your investment than is going out.

What you do with that cash flow will make all the difference if interest-rates rise.

Spend it on assets that look pretty but don’t appreciate – think cars, jet skis, expensive clothes etc – and you’re not taking advantage of a good situation.



Instead of splashing out on high-ticket items because of the savings you’re making off low-interest rates, use this opportunity to get ahead of the game. 

The number one thing property investors need to do when the going is good, is to create a financial buffer for each of their investment properties.

A buffer is an emergency amount of capital or money that investors can use. The key to this buffer is that it’s liquid. It’s real cash that you can get your hands on easily and quickly.

A buffer protects you if your circumstances change, if a tenant doesn’t pay rent, or if something in the property breaks and needs a fast replacement. 

It also means that when interest rates increase and your rent rates take a while to catch up, you stay in the black. 

Over time, if you continue to pay into the kitty, this buffer can even allow you to renovate your property when it needs a lift, which will help to keep your rent rates high. 

We recommend having anywhere from $5-10k per property to make sure you never have to put your hand in your own pocket for when the unexpected happens. 

As property investors we want 100% of the cost of our properties – that’s renos, insurance, emergency maintenance and any interest-rates spike – to come out of a buffer, and not our pockets.

Talk to the coaches at Positive Real Estate about how to structure your strategy so that your buffers are healthy enough to keep your properties paying for themselves.



There’s no denying that everyone has an opinion regarding the real estate market right now, but the truth is, no-one is an expert except the experts! They’ve been in the game long enough to see how the different property cycles work and what you need to be aware of right throughout your investment journey. 


Learn more about how you can take advantage of the current property market at one of our free property investor seminars. You’ll be led by a team of professionals who have demonstrated experience working across all types of markets so you can optimise your ability to grow a budding portfolio, create passive income and get set for the future – whatever that may look like for you. 

Spaces are limited. 


Register for the free property investor webinar now.

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