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Many investors usually wait for the rates to drop before they make any
investment. It’s a logistically valid and sound strategy. You should take
advantage of the low rates when considering making investment in what could be
a potentially good business opportunity.
Here is a list of investment opportunities worth considering.
1.
It’s Time to Buy a Home or Invest on Properties
If you’re planning to
buy a home, wait for the interest rates to go down. The drop in interest rates
is a sign that the values of real properties are also on the slide. Bargain
hunters will have a field day because of the receding property prices. You can also
consider buying a home or apartment which you can rent out as a source of fixed
income. It is easier to obtain investments loan than owner occupied loan. It
assures the bank of your capability to pay them because of the income from
rentals that will be generated by your investment.
2.
It’s Time to Pay Your Credit Cards
Because of the
lowered rates, your mortgage payments are also reduced proportionately, thereby
bringing extra money in your pocket. This savings can be used to settle your
credit card debts by paying first the one with the highest interest rate. It is
much better if you can consolidate all your debts to the one with low and fixed
rate interest.
3.
Increase Your Mortgage Repayments
Shortening the length
of time to pay the loan will result in the reduction of the original interest
rate to be paid. This can be done by increasing the monthly amortization of
your loan. But first, check-out if the contract allows it to and if it doesn’t,
pay only the original amortization or a fee may be charged to you for making
additional payments.
4.
Consider Buying a Car
The long wait is
finally here. Your dream of having that much needed car will now be a reality.
Those who can’t pay the car in cash can avail of car loans on reduced interest
rates. With lower interest rates, borrowing money becomes easy and affordable
to repay. Just check out the different car loan products and choose the best
deal that carries a light and flexible repayment plans.
5.
Try to Refinance Your Loan
As soon as the
interest rate drops, make extra effort to refinance your loan. The availability
of low interest loan in Australia’s financial market will give you the
opportunity to transfer your loan to a more affordable low interest loan. This
new loan will have some fees in it but some lending companies are waiving these
fees just to get you. Even if you consider paying all those fees, it will end
up still being economical in the long run because of the low interest rate that
you will pay throughout the loan term.
6.
Make a Review of Your Investments
If investment in the
property market is not your cup of tea, there are many investment opportunities
where you can put your money in. Try the stock market, the returns are good but
the risk is high. Better consult a professional financial adviser if you plan
to take the plunge. Another good investment opportunity is buying bonds. It is
a low-risk investment but with low returns.
Don’t just look at the money market when rates are low, make the most
out of it to somehow alleviate your financial burdens. Who wouldn’t want to
experience financial freedom anyway?
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