Unfortunately right now in Australia, lockdowns are a part of life. Melbourne is going through its fifth lockdown in 18 months. And Sydney’s lockdown is showing no signs of being lifted any time soon.
As tough as it has been on so many people, from a bird’s eye perspective we’re actually in an interesting time in history in terms of property investing.
Because due to the ‘perfect storm’ of conditions happening in the economic market due to COVID, we’ve got incredibly low interest rates. Which is making it easier than ever to purchase property.
Most people think that interest rates can’t get lower. But guess what? They can. And they just might…
You see, during the pandemic, the RBA have been printing 5 billion dollars a week to keep the economy afloat. But now they’re cutting it down to 4 billion a week. That’s still a lot of money, but they’re clearly thinking of unwinding the rate of their monetary stimulus.
Many banks and markets might only start seeing higher rates at the end of 2022 or even 2023. But the reserve banks will keep the interest rates ridiculously low until 2024.
That’s another four years of cheap money. On one hand, that’s great news if you’re an investor (or aspiring to become one). But on the other hand, it’s not great news because your cash in the bank is being devalued by the very same mechanism.
With 4 billion dollars being printed every week, it means your dollars in the bank are getting flooded with cash. And what happens when there’s plenty of a resource to go around? It cheapens it. So while that 4 billion dollars is helping keep the economy afloat, it’s also devaluing our cash savings.
And even worse for your bank deposit, they’re no longer putting a time limit on this extra cash splash. This is because inflation is up, and unemployment is down. It is creating a crisis that the RBA can only solve by printing more money.
That means the value of your bank deposits will continue sinking week after week until the RBA stops printing money.
What Should You Do With Your Money Instead
If you’ve money in the bank for a deposit, then this is the right time to start investing in property. Because as they print more money and inflation going up, the property prices will go even higher. And as an investor, you’ll make more money with these increases.
It’s the boom stacking I’ve been telling you over and over.
Now, many people admire my success. They keep asking me how they can get started in property investment. And I always tell them one thing—get educated. Find someone who is actually doing it and is successful in the property market.
If you’re curious to know how to do it yourself, I have a 14-day challenge to help people who want to create their own Blueprint for creating a cash-positive property portfolio that gains value and gives you passive income on autopilot.
Over 14 days, participants hear from the experts and learn from me how to develop your plan, fix your credit, look good for the banks, organise your tax structure, choose the right property, set yourself up for 5-10 properties (instead of getting stuck at 1), and much more.
The Challenge helps you get educated and create an informed plan for getting your first, second, third, and beyond cash flow positive investment properties.
It’s a great way to get your ducks in a row and start on your path to becoming a property investor in a safe and steady way.
At the moment I’m offering entry to the challenge with no payment upfront, so there’s basically no risk involved.
If you’re interested in finding out more, go visit this link to check it out.