Expert Advice with Ian Hosking Richards.

When accumulating wealth, asset growth is essential. Without growth, the plan doesn’t work. However, no matter how good the growth potential of an asset is, you will not be able to take advantage of it if you cannot afford to hold the property – preferably for the long term. So assets need to provide a balance of potential for capital growth and reasonable holding costs.

With rental incomes increasing and interest rates dropping, cash flow has never looked so good. Whether still acquiring properties or in consolidation, everyone is in a position to benefit from the current economic conditions.

The Reserve Bank has given strong indications that we are entering a period of extremely low interest rates. Not only that but these conditions may become the norm for years to come. This is fantastic news for investors, though not so good for those holding cash at the bank!

While some may say that low interest rates (and low inflation) will lead to sluggish growth in the years to come, this does not take into account the critical supply–demand dynamic. Sure, you have to be selective as to what and where you buy, but this has always been the case.

I was with an investor a couple of nights ago who is looking to spend just over $450,000 on a large, fourbedrooom, two-bathroom, DLUG town home in Brisbane’s middle ring. With a 10% deposit and 90% lend, he will be $140 per week cash flow positive. Even I was quite surprised. Only a few months ago you would have had to purchase a dual occupancy in order to get that kind of cash flow.

So there are lots of opportunities at the moment to go out and buy a great investment that will show strong growth over time and provide healthy cash flow on a monthly basis in the shorter term.

Less experienced investors often make the comment that a particular property seems expensive. Well, let me tell you, everything seems expensive at the time, but in 10 years’ time, believe me, it will look like an absolute bargain. For me, a property is ‘expensive’ not because of its price. It is expensive because of my monthly repayments. So a $400,000 property can seem expensive if I am paying an interest rate of 8%, but a $750,000 property can seem really cheap if I am paying 3.5% interest. I am always looking for quality properties in great areas that will attract a premium tenant, and at current interest rates it makes even more sense to go for real quality.

Being a successful investor is about having a good mindset. In the past 20 years, I have always been able to fi nd great buying opportunities, whoever is in government or whatever the state of our economy. But I feel that we are now entering a golden age of investing, in which there are amazing opportunities to purchase quality properties with great cash fl ow and growth potential. As always, not everyone will take advantage of current market conditions. Make sure that you are one of those who do so.


Ian Hosking Richards is a successful property investor with a portfolio of over 30 properties. He is the CEO and founder of Rocket Property Group, a leading independent real estate agency that helps hundreds of people each year enter the property market or grow their existing portfolios. 

For further information or assistance, please visit or call 1300 850 038.

Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.