If you’ve been feeling uneasy about property lately...
... you’re not alone! Especially after the February RBA rate rise, as I’m hearing the same thing again and again: “Maybe I should just wait until things settle down.” And I get it. Because the headlines are loud and they’re designed to trigger fear. Right now, many investors are concerned that inflation will remain stubborn, which could keep rates higher for longer. So they sit on the sidelines waiting for certainty. But here’s the problem: Certainty never arrives until AFTER the opportunity has passed. The truth about the February rate rise: Most investors see a rate rise and assume it’s bad news for property. But strategic investors know something different: a rate rise doesn’t “kill” property markets. It filters out weak or emotional buyers, reduces competition and creates the best buying conditions for those who are prepared. Just look how well our property markets performed this time last year when interest rates were even higher. And while some people freeze, others act because they understand that property is a long-term game played with short-term emotions. What strategic investors are doing differently right now: They’re not obsessing over what interest rates might do in the next 3-6 months. They’re making decisions based on what property will do over the next 5, 10, or 15 years. They understand that: - Australia is still facing a severe housing shortage - Population growth remains strong - Rental vacancies are at near record lows - Construction costs have surged, and new supply is constrained and will only come on at even higher prices. - First-home owner incentives are driving certain segments of the market - And the market has already reset - prices have been rising again because demand is stronger than supply So even though borrowing has become harder, quality properties in the right locations remain scarce. And scarcity is what drives price growth. Why this matters for you After the February rate rise, one thing is clear: the next few months will reward strategic investors and punish reactive ones.