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Speaking to Mortgage Business’ sister publication Smart Property Investment, Real Wealth Australia’s Helen Collier-Kogtevs said mortgagee sales will rise if rates go up.
“So while the ship is steady, it will all be fine. However, once interest rates start to go up, I think that’s when we’ll start to see mortgagee options or people in a world of financial stress,” she said.
“Investors should prepare – always. They should always prepare for interest rates going up. It’s not just a ‘one-off’ thing. It’s an ‘always’ thing."
Ms Collier-Kogtevs said property investors who are waiting to see how the market performs in 2016 are missing out on serious bargains as vendors look to offload their properties before Christmas.
Savvy investors could save up to $20,000 on purchase prices at this time of year as desperate sellers look to wrap things up before the New Year, she said.
“I think it [the Christmas season] just presents a really good opportunity for investors because there’s not as much competition.”
With the market quietening down, it could well be the perfect time to buy, she said.
“I love it when the market goes quiet. I think it’s wonderful because it really does present a lot of opportunities around the country for investors. It’s now time to bring out the negotiating guns and make sure you’re not paying full price.
“Getting a discount is really important because it means you’re creating buffers, you’re paying below market value and you’re saving your deposit money – which you could then use on another purchase,” she said.