Short monologue offering practical property-investment advice in response to rising mortgage rates. The speaker suggests strategies such as renting out properties, swapping lower-yield assets for higher-yield ones, and that high-income buyers might take advantage of cooling markets in Sydney and Melbourne to buy expensive properties for tax-deduction reasons.
The concept that we unpacked a little bit before. You might want to revise your strategy on investment. You may need to whether it's putting a tenant into the place that repayment's going to go up. You might want to rent somewhere else. You may have to do a bit of a swap sell one of your properties to me. So asset swapping could be a potential thing someone could look at to deal with this mortgage rate cliff and getting rid of lower yield properties to buying higher yield properties having the right yields where the yield comes into interest rate. There is also a subject of people that probably need a tax deduction as well. With high income earnest they might be able to afford the 4, 5, $6 million property in the middle of Sydney or Melbourne and that could be quite advantageous for them to buy with the cooling off a little bit of the market to get a bit more of a bargain. So there's always people that are out there buying. There's always people that need to readjust their strategy. That's where I would go.