As good as times are right now for making a decisive move into investment property, for some people, the timing will never be right.

We are still enjoying historically low interest rates, with the cash rate at 4 per cent, and mortgages are available at around 6.9 per cent. However, the forecast is that they will rise further this year, and what this does is provide some people with the excuse they need to stand still and avoid making a move.

Any logical analysis will tell you that waiting makes no sense. While interest rates will go up a per cent or so, the expected increase in rentals will more than compensate. In any event, the interest costs you pay on an investment property are tax deductible from your overall income.

If there’s no logic behind inaction due to the likelihood of a rate rise, then what’s happening? Why do people use this as a reason to justify their inaction?

What is really happening here is that while they realise they need to invest to provide for a comfortable future, this involves a big decision. It means facing up to realities, doing some analysis and planning, and then summoning the courage to say, “Yes, I am going ahead with that strategy, because it makes a lot of sense”. This would then commit the person to the next steps – a loan, signed legal documents, ownership of a property, a new home on it, tenants to lease it, property management, and so on.

Of course this all sounds a bit scary. It’s like the first day at high school, or uni, or the first day in a new job. Only a whole lot scarier.

So guess what some people do? Yes, they simply cop out, because they feel they don’t want to go there just yet. So how do they avoid the issue in a logical way, so that it doesn’t sound illogical or fearful?

You guessed it. “Interest rates are rising”. That brings the curtain down on the discussion, as well as on a huge opportunity. Is that logical?

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