If you are thinking of investing in real estate for the first time, check out my Top 5 tips for joining and climbing the property ladder.
1. Know your budget
When thinking about investing in property, the first thing you should do is set out your budget. Make sure you consider not only the purchase price but also stamp duty, legal costs, mortgage insurance (if needed) plus renovation costs if required. Once you know your numbers speak to me regarding a pre-approval to ensure you know exactly how much money you can borrow.
2. Speak to the experts
The structure and repayment type of your investment loan will depend on your individual circumstances. You need to consider all options before you decide.
The structure of your loan is vital for your long term financial plan so speak to the experts such as a financial planner, accountant and conveyancer before you apply for finance.
3. Do your research
It is important to research locations and local demographics. Buying in an area where there is a high demand for rental accommodation will pay dividends.
4. Know the market
Once you have decided on a location, speak to the locals, real estate agents and council to gain a better understanding of the area. Check sales results in the area to get a good feel for what properties are worth.
5. Be objective
Purchasing an investment property requires a different mindset. It is important to buy with your head and not with your heart. Look at this type of purchase as a business decision and rely on your facts and figures to assist you with making the decision.
If now is the time for you to enter the investment property market or you wish to compare your current investment loan, please call me on 0425 826 967 or 03 9432 2121.