Make 2022 The Year You Start Your Journey As A First Home Buyer

With rising interest rates, the property market looks like it’s going to correct or crash depending on how you look at things.

Now, there are other factors such as the current inflation, the pandemic, and the war in Ukraine affecting the supply chain.

But the consensus is that the property market is going to see some more decreases. That seems like a fair conclusion to make given the fact that the amount of properties on the market are increasing and the actual prices have been dropping for several months now.

So today what we’re going to look at is a way for investors to purchase investment property at the bottom of the market.

Waiting for the bottom of the market?

Firstly, mindset is very important here.

I want to take you back to the Global Financial Crisis (GFC) around 2008 and 2009. When the market had dropped substantially, I was working in a bank in Beaumaris, an affluent suburb in Melbourne.

I noticed then that all of these people had a lot of equity because their properties had gone up a lot, even considering the crash. But what I also noticed was that no one wanted to buy properties because everyone was waiting for the bottom of the market.

And by the time the market started to recover, people either got back in at the elevated price or at a cost close to what it was before, so they just missed the market completely – and that is because they weren’t ready.

What I want to point out is that you actually don’t know where the bottom of the market is.

The best investors in the world find it hard to figure out where the actual bottom of the market is because at the end of the day, if it’s easy to figure out where the bottom or top of the market is, everyone would be able to make a lot of money very quickly.

So we don’t actually know where the bottom is, but we need to be prepared for the opportunities because if we’re not in a situation where we are prepared to buy the properties when they’re priced cheap, then we’re going to miss the best opportunities.

Let’s be honest here, the yields don’t give us very good opportunities at the moment. So the lower the property drops, the higher the yield goes up, which means that is potentially a better investment for yourself.

So one thing I’ve been trying to do with a lot of my clients is for them not to buy the negativity of the news because at the end of the day, assets follow a cycle, like all other prices of things, and they go up and down all the time.

The Secret: Buy Low

So, if you want to be buying investments, you prefer to buy them at a low price, right?

You need to be in a position where you are ready to buy these investments because they haven’t dropped that much in value yet, but there will be a time when these opportunities arise and you need to be ready for these opportunities.

How do you buy an investment property with no money down?

I’m going to address this by answering the question, how do you buy an investment property with no money down?

Because let’s be honest, most people don’t have cash deposits. And if they do, they’re better off being paid down into their home loan and we borrow 100% for the investment property.

The reason why we do that is to maximize the tax effectiveness of your debt.

How does it work? So, we need to make the assumption that you already own property. What you do in the ideal scenario is you access enough for your deposit plus your costs from the equity from your existing property, and that allows us to basically have a pile of cash ready for the perfect moment to buy in the market.

We have to remember that we’re in an environment where it’s changing rapidly.

For example, with rising interest rates, it actually does decrease your borrowing power as interest rates rise.

When you as the investor think that you’ve got a good deal, and you know your price limit, you can go into a buyer’s market and you can be quite aggressive in your offers.

The only way you can plan ahead and get a good discount is if you’re ready to buy. If you’re in the market for a while and agents know who you are, or you’ve got a buyer’s agent, and the agents selling the property know that, then you’re in a position to buy. They’re going to come to the table and they’re going to want to get rid of these properties, because at the end of the day in a downturn, what you have is a surplus of properties on the market.

So it’s a buyer’s market and the buyers can sit there until the agents discount their properties and come to a value which is acceptable to the buyer.


There will be incredible opportunities ahead. Again, I will emphasize, you need to be ready because history will repeat – these are cycles. Get yourself into a position to take advantage of the best opportunities, which will come around again, because the property market is a cycle.

If you want to plan ahead in getting that position, I suggest you talk to an investment-savvy mortgage broker, like the team here at Will Bell Mortgage Broker. The links are available below, so feel free to get in touch and book a strategy session with us now!

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Will Bell

Will Bell has 15 years’ experience in the finance industry, the last 11 years he has owned and operated Will Bell Mortgage Broker. He specializes in residential home loans and over the years has carved out a trusted brand. This is proven by the reviews his customers have made regarding the service and the experience he has provided.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.


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