Interest rates predicted to increase! What does that mean for investors?

Rpdata.com national research director Tim Lawless said on Friday that it’s likely that when the RBA meet again in October, an increase in interest rates will be imminent. Mr Lawless attributes his predictions to a strong and growing property market and improving economic conditions.

While the RBA this week announced that interest rates would remain static for another month, Mr Lawless said it is now becoming more apparent that the next move in rates is almost certain to be an upwards one. And, he’s not alone with many economists also predicting an official rate rise as early as next month.

However, it is not all doom and gloom for all. Many of our clients are building wealth by using Votiva’s customised strategies which include mortgage reduction, debt conversion and wealth creation. By having our strategy in place any interest rate movement will have little, or if any, impact on their overall result. If that sounds interesting to you (and you are from Australia) then you might want to take advantage of our FREE Property Investment Consultation worth $399. Just email me at karenanderson@votiva.com.au.

The question to be asked is how can our clients achieve such success and peace of mind with their investing! If you email me, I can give you the full details but to give you a little taste, one of the key things we do to help you with your property investment is we show you how to maximise the tax benefits that flow from your investment. So if you are on a variable rate loan and rates go up, you will pay more interest, BUT you will also be able to claim more back through you tax benefits. So if interest rates are low, cashflow is great. If interest rates rise, you get more from the tax man. Either way, you win! If you would like further information, please email me at karenanderson@votiva.com.au

Remember that property investment is a long term strategy and that interest rates will rise and fall through the life of the investment. So interest rates in and of themselves should not be the sole factor in determining whether you should invest in property or not.