I’m a big believer in education.
In fact, education is one of the first steps I recommend in my Start Here page for any investor who wants to “make it”.
That’s why you can find here at the Property Resource Shop a wealth of education about finding the best deals in your market, how to crunch the numbers, and applying the right strategies for creating wealth. These investing strategies and tools are the bread and butter for any serious property investor.
But it’s important to also pay attention to the bigger picture.
A good investor needs to understand the major market forces that are at play and determine borrowing costs, cash flow, and many other aspects of your life (and the lives of your competition!)
I always like to stay informed about where the market is headed and where our economy is going. Because of that, I recently read a great blog post that I want to share with you today.
It was published on Steve McKnight’s website, PropertyInvesting.com. If you’re not familiar with Steve’s work, check out my blog post, 5 Books Every Successful Property Investor Needs To Read (his book is right there at #1!)
Years after I read Steve’s book, I had the honor of being featured in the revised edition of 0 to 130 Properties in 3.5 years. Click here to download my chapter for free (PDF)
The blog post, 4 Economic Shifts That Could Push Interest Rates Higher, offers a great overview of the 4 forces that affect the actual interest rates we pay, whether the RBA likes it or not:
- Burst of the “Bond Bubble”
- Australia’s credit rating
Together, these four forces affect the value of real estate, borrowing costs, and as a result – access to credit for housing. Go ahead and read the post now – but don’t forget to come back and leave your comments and questions here! 🙂
P.S. You need to be registered to Steve’s website before you can read the full post. It’s free and only takes a minute, and I can tell you from personal experience that he has excellent content there. It’s definitely a resource I keep my eye on!