Question 1

What if interest rates rise another 2%?

Accepted Answer

We stress-test every recommendation at +2% above current rates (in line with the APRA serviceability buffer) before approving the purchase. If your scenario doesn't survive that stress test, we don't proceed. We also encourage building a 6–12 month buffer in offset before purchase. Investors with one or two properties typically absorb a 2% rise; investors with leveraged portfolios need explicit cashflow planning.

Question 2

How much cashflow buffer should I hold?

Accepted Answer

We recommend a minimum buffer equivalent to 6 months of full property holding costs (loan repayments, rates, insurance, body corporate) PLUS 6 months of personal living expenses. For a portfolio, scale accordingly. The buffer should sit in an offset account — earning effective interest savings while remaining accessible.

Question 3

What if negative gearing is removed or grandfathered?

Accepted Answer

Possible but politically difficult. If introduced, most proposals grandfather existing investors. We model your investment cashflow without negative gearing benefit so the underlying numbers stand on their own. If a property only works because of the tax deduction, it doesn't work — we won't buy it.

Question 4

What if my tenant stops paying rent?

Accepted Answer

Landlord insurance covers most loss-of-rent scenarios (typically up to 12 weeks unpaid plus malicious damage), provided you've followed correct tenancy procedures. Property managers chase arrears formally from day one and apply to the relevant state tribunal (VCAT, NCAT, QCAT) for termination if needed. The legal process takes 4–8 weeks depending on state.

Question 5

What if the property sits vacant for months?

Accepted Answer

We screen suburbs with vacancy rates below 2% as a risk filter — stronger rental demand reduces but doesn't eliminate vacancy risk. Maintain landlord insurance with loss-of-rent cover, hold 3+ months of holding costs in buffer, and respond quickly to PM advice on rent positioning. A property sitting vacant for months usually signals it's $20–$40/week above market — adjust and it lets quickly.

Question 6

What if there's a flood, fire or other disaster?

Accepted Answer

We screen for flood, bushfire and cyclone overlays before recommending. Insurance is non-negotiable from the moment you go unconditional. Premiums in high-risk zones (e.g. North Queensland cyclone, Brisbane River flood) can be material — we model premiums into the cashflow before buying. Some properties in extreme zones become uninsurable; we won't recommend them.

Question 7

What if the market drops 15%?

Accepted Answer

Markets do correct — typically 10–20% over a 12–18 month period during downturns. The danger is forced selling at the bottom (you crystallise the loss). The defence is buying with a long horizon (10+ years), maintaining cashflow buffers so you're not forced to sell, and not over-leveraging. Quality assets in fundamentally sound markets recover; poorly chosen assets in oversupplied markets may not.

Question 8

What if I lose my job?

Accepted Answer

This is the most common reason investors get into real trouble. Defences: maintain a 6-month emergency fund OUTSIDE property, hold income protection insurance, and avoid stretching to your borrowing maximum. If you lose income, contact your lender early — most have hardship programs (interest-only periods, repayment pauses). Selling under duress should be the last option, not the first.

Question 9

What if I need to sell within 2–3 years?

Accepted Answer

Property is a high-friction asset. Total transaction costs (stamp duty in, agent commission out, legal, marketing, capital gains tax) typically erase 8–12% of value. If there's any chance you'll need the capital within 5 years, property is the wrong asset. We'll tell you that on the strategy call rather than take the engagement.

Question 10

Will NOVAQ guarantee capital growth or rental yield?

Accepted Answer

No. No legitimate buyers agent in Australia can. Past performance is not a reliable indicator of future performance. We commit to disciplined methodology, transparent process and aligned interests — not to outcomes outside our control. Anyone promising specific returns is selling something they cannot deliver.

Question 11

Whose decision is the final purchase?

Accepted Answer

Yours. NOVAQ recommends, models, negotiates and assists — but the final purchasing decision is the client's. You're responsible for satisfying yourself on building integrity, planning, the neighbourhood and the financial consequences. Our engagement letter makes this explicit because it's true: we cannot bear consequences for an asset you own.

Question 12

Is anything you say financial advice?

Accepted Answer

No. NOVAQ Realty does not hold a financial services licence under s913B of the Corporations Act 2001 (Cth). Anything we say is general information based on experience and data — not personal financial, taxation, legal or credit advice. Always seek qualified independent advice before acting.

Therisksofinvestinginproperty—andhowweplanforthem.

Interest rates & cashflow

Tenants, vacancy & property risk

Market & personal risks

What we won't promise

Property Cashflow Stress Test

5 Mistakes to Avoid With Your First Investment Property

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