A majority of first home buyers believe they won't be able to afford to purchase in the suburbs where they want to buy, new research has revelealed.
According to Mortgage Choice’s 2014 First Home Buyer Survey, which canvassed the opinions of more than 1 000 future first time buyers who plan to purchase a property within the next two years, 54.3% of respondents said they will not be able to buy where they want to.
However the thought of still entering the property market remains appealing.
According to Mortgage Choice’s Investor survey released earlier this year, more than 20 per cent of investors said they purchased an investmetn property before an owner occupied property.
If you are considering purchasing an investment property, mortgage broker, John Kennedy, of Mortgage Choice in Mudgeeraba offers the following tips:
When investing in real estate, it is important to buy the right property at the right price. The ideal investment property is on ethat will not only increase in value over time, but one that is attractive to potential tenants.
Ensuring you have limited times when your property is not tenanted is important to ensure a cash flow and make holding onto your investment more affordable.
Do your sums:
When investing in property, it is important to look at it as a long term investment, so make sure you can afford your mortgage repayments over the longer term. A finance professional can help you to structure your investmetn so that it suits your needs and circumstances both now and into the future.
Understand the market dynamics:
Having a good understanding of the property market as well as its ebbs and flows will help you to choose the best investment property for your needs and future financial goals.
Location and type of dwelling:
Investing in land vs unit vs house all come with their pros and cons. Although land has no rental income the percentage increase in value over time is often higher as there is no depreciation.
A unit tends to come with less maintenance but history has shown less growth when compared to free standing dwellings. Units are in some suburbs easier to rent and therefore have a steady income flow.
Homes on good size blocks are great when near schools and parks are ideal for families but tend to have more maintenance. A budget for maintenance should be considered in your overall financial plan.
John can assist your research by providing you with property reports for any Gold Coast property.
He will research and present you with a choice of investment home loans that marry to your needs, all at no cost to you.
If you would like learn more about your home loan/investment options, call John today on 5559 2563 or send him an email email@example.com