Investors weathering cash flow storm
Surveys of property investors have confirmed that although investing can be a fantastic way to build long-term wealth, investors need to be prepared to weather periods of negative cash flow, especially in the early years.
The Property Investment Professionals of Australia (PIPA) found that 65% of the 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 and, while rents have risen, they are a drop in the ocean compared to 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 thinking about buying an investment property or ensuring an existing investment loan is structured correctly, I can help.
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