Five considerations for investing through high interest rates

realestate.com.au reported on five principles developed by InvestorKit and Confidence Finance on 14 July 2023, during a period of rising borrowing costs and changing property-market conditions.

Supply, local economies and personal capacity

The first theme is housing undersupply: comparing homes available for sale, construction activity and rental availability. The article then turns to the investor’s own position, including savings, cash buffers, purchase limits and the rental income needed to support a property.

It also describes local economic indicators such as unemployment, industry diversity, regional output, migration and infrastructure activity. These measures can reveal differences between locations that are obscured by national headlines.

A framework for questions, not pressure to buy

The remaining themes concern the longer-term role of assets during inflation and the different cycles operating around Australia. Together, the principles encourage research beyond the investor’s immediate area.

The article reflects the conditions and views reported in July 2023. Its suggested buffers and saving targets are not personalised advice. A decision to buy still depends on current borrowing capacity, the cost of holding the property and the investor’s wider circumstances.