New data shows more than a third of Queensland home buyers have recently or are currently in the market to purchase an investment property.
The results from a Commonwealth Bank survey of more than 1,000 purchasers revealed 38 per cent of the Sunshine State’s property market is made up of would-be property investors.
Clive van Horen, the general manager of home loans at the Commonwealth Bank, said property remained a popular and stable investment choice for many home buyers due to a number of reasons.
“Firstly that it is the best investment opportunity available to them, secondly the low interest rates are worth taking advantage of, and also thirdly just planning for their retirement looking for the income stream you get from property investment,” van Horen said.
“My tip for all prospective home buyers is to do your research, compare property prices across suburbs, and prioritise your requirements. Seeking expert advice from your home loan provider is a good place to start," he added.
Perhaps the biggest mistake I see borrowers make is cross collaterising properties when they do not need to be. This involves a loan structure where all loans are secured by all properties and can create complications when the times comes to sell or increase lending.
I structure loans in a stand-alone basis where ever possible to ensure my client’s loan structures are as transparent and flexible as they can be.
If you would like to discuss your investment loan options, call us at Mortgage Choice in Paddington on 07 3369 5620.