It seems everyone you talk to, there’s only a handful of topics people want to discuss.
Between the economy, the rising cost of living and interest rates – one of them is sure to start a conversation.
So, what approach should people be taking towards home ownership and interest rates, given the sharp rise over the past few months?
“It’s certainly putting more pressure on on top of homeowners or people who are owner-occupying their property,” Maple Property Group‘s Beau Arfi recently revealed to Ticker Insight. “We’re finding investors are starting to to increase their their rental.
“This means that tenants are starting to do it a bit harder. And that’s getting passed on.
“Look at some alternative investments, as they can help with your cash flow and give you a little buffer.”
Arfi is no stranger to feeling the pressure, as he was the owner of 20 properties, and five businesses in three separate offices, all by the age of 27.
He thinks residential property will be the more sustainable option looking towards the future, despite his strong interest in the commercial and industrial real estate sectors.
“I’ve invested in commercial, I’ve got industrial, I’ve got the office spaces, retail, and car parks, and, of course, residential, I’ve got a bunch of different things,” Arfi continues. “People are always going to need places to live, – bricks and mortar.
“When immigration starts to come back, there’s going to be a lot more demand for residential.
“I feel like residential is probably a safer bet, especially as times go a bit tougher.”
Arfi reveals he has been noticing a trend, as rates go north – investors and landlords are also increasing their rental rates.
“Investors are able to have a little bit more control by by increasing the rentals, just to maintain that cashflow level,” the Maple Property Group boss discusses. “Unfortunately, it’s going to be the tenants that feel a lot of that pinch.
“It’s difficult because they’re the ones (tenants) who want to get into home ownership, and inflation is also increasing.”
For more information, head to the Maple Property Group‘s website.