Professional help in property investment
Use a buyers agent/property finder
Seek advice about the type of investment property that will maximise your investment. For example, if your repayments are at an interest rate of 8% then you would need a property to secure you, as an average over the entire loan term, an annual return on investment (ROI) that is higher than the costs i.e. if net rent is 4% and the interest rate is 8% then it only needs to grow at more than 4% to be a sound investment. Buyers’ agents know the market better than most and are a valuable resource to use for advice or for negotiating with property sellers and/or their agents.
Visit a financial adviser and/or accountant
You also need to discuss your full monetary situation with someone with experience in advising on diversified investments. That’s because you need to make sure that your financial situation is improved by an investment property and that you can afford repayments without stretching the budget uncomfortably. Remember, you must make this investment work for you and your long-term strategy.
Make an appointment with your local Mortgage Choice broker to find out how they can help you get the right investment property loan from our large panel of banks and lenders.