Surveys show that property investors confirm investing can be a fantastic way to build long-term wealth, but they need to prepare and learn to manage periods of negative cash flow, especially in the early years.
The Property Investment Professionals of Australia (PIPA) found that 65% of investors they surveyed were negatively geared in 2024, up from 57% in 2023.
PIPA chair Nicola McDougall said the results confirmed that being a property investor involves both upsides as well as challenges.
“Interest rates remain significantly higher than they were a few years ago. While rents have risen, they pale in comparison to the higher lending costs,” she said.
If you’re a property investor, here are five tips for managing your financial position:
- Build a cash buffer to cover periods of negative cash flow
- Factor in rising interest rates when budgeting future costs
- Work with an accountant to maximise your tax deductions
- Review your loan on a regular basis to ensure it’s still competitive
- Speak with a mortgage broker to explore refinancing or restructuring options
If you’re considering buying an investment property or reviewing the structure of your current investment loan, now is the perfect time to take action. Our team can help you make sure your investment is set up for long-term success. Contact us today to get started.