Choose the Right Investment Property
Your Loan Hub has provided a few tips to help you decide on buying your first residential investment. These tips could help you avoid future problems and headaches.
Know Your Goal
Know the purpose of your investment. Is it for your retirement? An income generator? Or for building equity to gain a regular income? Either way, it’s important to set a goal so you know your endgame.
Research the types of property that are in demand, deliver high rent and also those that are not in demand for your understanding of the market. Check out the neighbourhood you’re planning to invest in. Your goal would determine your research. Understanding the type of property that’s suitable for your situation is the key. You can also pre-determine your borrowing power, based on your income and expenditure, by using our borrowing power calculator.
Old or New
Do you want to rent straight away? Or you prefer on renovating your property? There’s always a potential on both sides depending on your access to your funds.
If you’re keen on renovating, a number of Reduce’s loans are geared for construction purposes, so speak to our lending specialists by calling 1300 733 823 to find out more.
Location is crucial for your property investment and can depend on your ideal tenants’ lifestyle. Determine the establishments, services, amenities and public transport near you target property.
Do The Math
Consistently check your finances before purchasing a property. Make sure to cover repayments, extra upfront costs such as conveyancing, inspections and stamp duty. Consider also the ongoing costs like utilities, property management fees, etc.
Be realistic with your cash flow and calculate your expenses well to be able to continue to afford and maintain your property. Do the math carefully to avoid mortgage stress. To make sure your finances are on the right track, you can use our budget calculator and track down where your money goes and how much more you can save or spend.
Choose the right setup
In any investment, make sure that you receive most of the benefits and always understand how your purchase might affect you and your family.
Get expert advice
Make sure that you choose the right broker, because your broker can put you in touch with experts when it comes to your investment. Do your research, if you need further assistance and advice, Contact us now and get your own finance manager to guide you throughout the process.
Find more tips in pursuing your property investment at Your Loan Hub and find the cheapest home loan rates at Reduce Home Loans.