Investing in residential property is one of the popular investment options in Australia. Property investment is often seen as being less risky than other forms of investment as it can be less volatile than shares or other investments. If the property is tenanted then you earn rental income and If your property value increases, you will benefit from a capital gain when you sell. You’ll also enjoy generous tax concessions when you rent the property, adding to your income. Property investment can yield rich returns and is an excellent solution for anyone looking to retire early. With the right residential investment, you can retire when you want to without having to worry about where your money will come from.
However, while it may seem more straightforward there are several things you need to consider before investing in property.
Important Steps for investing in Property
1. First step for investing in a property is to work out your borrowing capacity. There is no point going out and looking at properties if you can’t afford to buy those properties. Consider all costs associated with purchasing a property such as stamp duty, building and pest inspections, deposit, conveyance fees, and other fees. You also need to determine whether you wish to put an initial deposit to buy an investment property using your personal savings or from the equity of your owner-occupied home.
2. Speak to your mortgage broker to get a better idea on how much are bank willing to lend you. Get pre-approval of your loan as this will help narrow down your search and look only at properties that you can afford. If you like a property and you already have a pre-approval this will speed up the process to get finance for your property. So, it is advisable to get pre-approval before you start looking at properties and before you start making offers.
3. Research property prices and rental income at various locations to identify properties that are affordable and look most promising in terms of growth potential over time.
4. Make an offer on the property you like. Make sure to get full financial approval from lender before you sign the contract.
How can Secure Mortgage & Finance help?
We have highly skilled and professional experts who are committed to help you secure your dreams and achieve financial goals. With so many banks and lenders offering various products this process can be very overwhelming for you. With help from us, we can make this process incredibly easy! We have access to many reliable lenders that we negotiate with to ensure that you get the best mortgage that suits your needs. We take every client very seriously and are dedicated to provide best services by getting low-rate home loans, simplifying processes, walking you through the process and assisting you at every step of your journey. If your aim is to build a solid property portfolio, we’ll help you tap into the equity of your current homes by using it as a deposit against an investment loan or as a deposit bond.
To get the best deals for your investment property, talk to our experts today!