Expert Advice with Helen Collier-Kogtevs, 19/03/2020
My passion for finance stems from so many investors hitting the financial brick wall or being declined for loans simply due to a lack of knowledge. Therefore, we specialise in residential finance, working with property investors like you, to ensure you get the best structure for building a property portfolio. I will be launching educational material to support investors in the near future.
With that said, due to (COVID-19), we are well equipped to continue business as usual, even with the teams working from home
My Prediction
I believe the Reserve Bank of Australia (RBA), in a rare out-of-cycle meeting, are going to drop interest rates today by 25 basis points to a new unprecedented level. This is on top of the 25 basis points handed down recently.
I also believe that it won’t stop there. The RBA will drop rates again next month, pending on how the Australian economy is tracking. Economists are suggesting that unemployment may double and that (COVID-19) will plunge us into recession... aka the Corona Recession.
If this happens, RBA will act quickly to continue to reduce in interest rates.
I also believe that we will plunge quickly into a recession BUT quickly bounce back later this year.
My Advice
Start the process of preparing yourself (financially speaking), either by making sure you are getting the lowest interest rate going or accessing your equity for future property purchases or by increasing your buffers to protect yourself against any unforeseen circumstances.
The share market have plummeted, crypto currency has dived yet property prices are solid and holding. If you do have shares or have invested in currencies, now is not the time to panic or sell – best to stay calm.
The Good News
According to realestate.com.au, the auction results and property sales for Melbourne & Victoria for last week showed a 75% clearance rate, whereas Sydney enjoyed a 77% clearance rate. A strong market coupled with really low interest rates is making capital growth properties less negatively geared or better still, neutral to positively geared.
For us investors, now is the time to prepare by getting your financial ducks lined up to either pounce on great investing opportunities or support you through these turbulent times.
Stay safe and rest in the knowledge that this too shall pass. :)
Happy investing!
Helen Collier-Kogtevs
Founder Real Wealth Australia | CEO eLINK Finance
Educator | Investor| Speaker | Best-selling Author
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Helen Collier-K
ogtevs is the Managing Director of Real Wealth Australia, a leading education and mentoring company for real estate investors. Not only is she a highly successful property investor and an educator, but also a best-selling author, and a philanthropist.
Helen is particularly passionate about helping people, especially people who are keen to create wealth and make a difference in their lives, and she has been mentoring thousands of new and experienced investors in their pursuit of wealth creation through property.
She founded Real Wealth Australia to mentor investors create wealth and financial freedom by focusing on helping them build an investment strategy to fit their individual goals, rather than focusing on one particular investing method using her successful “10 Properties in 10 Years™” system.
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.
