Frequently Asked Questions

What if I can’t get a tenant?
It has been our experience that, provided your property is located in a “high rental” demand area, you should have little problem finding a suitable tenant.  This is particularly true of the lower end of the rental market where the rents are more affordable.  Also with the right property management in place, vacancy should not be a problem.  A good manager, in the form of either on site management or local real estate agent, should have no difficulty finding regular and suitable tenants.

What if I lose my job?
A smart way to ensure that your loan repayments are met during any unemployment period is to arrange 'Income Protection Insurance' and/or 'Loss of Rental Income Insurance' with your financial planner.

Should you be retiring and about to receive retirement payments, long service leave, holiday pay, etc. and provided you have a mortgage off-set account, you have the option of placing excess funds into the off-set account which would reduce your interest repayments until you are re-employed.

What if interest rates rise?
Locking into a fixed-rate loan is a guard against the effects of interest rate rises.
If interest rates do rise and you are not locked in to a fixed-rate loan, your negative gearing effect increases.
You may have the option of rental payment increases to help cover the costs of an interest rate rise.

What if the government abolishes ‘negative gearing’?
In 1987, the government abolished negative gearing, however the huge upheaval it caused within the property market forced the government of the day to re-instate negative gearing.
The upheaval was significant:
- in the building/housing industry
- employment
- availability of rental premises
- the cost of rentals

Both Liberal and Labor governments are well aware of the repercussions of the abolition of negative gearing. 


If you have a question and you want to know the answer now, why not send an email to info@apsgrowth.com