With interest rates currently sitting at historically low levels, you may find that your savings are no longer earning you a great deal of interest from the bank. To increase the return you make on your savings and help you on your path to financial security, you could consider investing instead.
When you take the time to make a budget and consider your investment options, you may find that investing is easier than you first thought.
There are a number of ways you can invest your savings, with property being one of the most popular choices amongst first-time and seasoned investors alike.
By investing in property now, you can make current interest rates work in your favour by locking in a low rate. The other advantages of investing in property include:
- Regular rental income
- Expected long-term growth of property value
- Tax deductions
Once you have decided that you are ready to invest in property, you’ll need to work out your budget. Consider how much money you can reasonably afford to allocate to the investment each week or month, after you have accounted for all of your regular bills and expenses. Whilst you are making this list, consider all of your current commitments, as well expenses you expect to encounter in the future. Remember that investment properties have additional costs such as rates, property management and maintenance that you will need to account for.
When you know how much you can realistically spend, then it’s time to choose a property that best matches your budget and investment goals. You’ll also need to begin your loan application, so you are ready to make an offer when you find a property that appeals to you.
After a lender has received your loan application, they will assess your eligibility based upon your income and the property’s expected rental return. If you already own a property, you may be able to use this as equity, which means you won’t require a cash deposit.
To learn more about how you can invest in property, call me for a consultation.
0419 733 862
Your Garden City Mortgage Broker, Brisbane