Use risk instincts to douse the property fire

There is no doubt that everyone agrees property prices in Australian capital cities are worrisome. We are in a perfect storm where we see low interest rates, a low dollar, strong immigration, low supply and high demand, increased overseas investor activity and a falling stock market. Will it continue – who knows, but when you doing your numbers on how much you can borrow factor in rising interest rates, a loss of a tenant if you are reliant on rental income, and how you will cover yourself if you get sick or unable to work due to an accident.