When considering purchasing an investment property, you want to ensure that you are making the most of your money.
- Research the market thoroughly
- Have a long-term strategy
- Be informed about their finance options.
Here are a few hints and tips to consider before purchasing an investment property:
Research the gains
Read property-related and investment articles. Learn about areas you are contemplating buying in. Compare suburbs’ rental yields, resident demographics and tenant demand. Real estate tends to be a long term investment for most so research existing and planned infrastructure, past price growth and predictions and everything in between.
We can provide you with a free property profile report on the property you are interested in purchasing, to add to your knowledge.
The market moves in cycles; it has highs, lows and steady patches. Always ensure you are comfortable with the possible pros and cons of an investment asset and think hard about how they match your goals. Prepare for the peaks and troughs of the property cycle.
Build a financial buffer
Have a financial plan to cope with additional expenses including interest rate rises, maintenance and repairs, and/or the loss of a tenant, rental arrears, etc.
Cross your t’s and dot your i’s
There are many tax and legal considerations associated with property investment, so it is essential to seek professional advice from an accountant and/or solicitor before getting started. You want to ensure you will make a healthy gain from your investment strategy.
Investigate your property options
Conduct thorough research before settling on a property investment strategy. If you lack confidence about buying, talk to a buyers’ agent. Buyers’ agents know the market and can be a valuable resource to use for advice or for negotiating with sellers and their agents. You may also like to discuss your move with an accountant or financial planner.
Choose a loan with features that suit your finances
There is most probably a range of property loan products to weigh up against your financial situation and investment strategy. Interest only or principal and interest loan? Fixed or variable rate or perhaps a split? Which features are needed? Cash deposit and/or equity? A professional mortgage broker can help you compare a range of home loans and guide you through narrowing it down to one suited to your requirements and objectives.
Contact our mortgage and home loan specialists at Mortgage Choice in Mudgeeraba on the Gold Coast, on 5559 2563 to discuss your options or check out our handy calculators to start your planning today.