buying an investment property

Top Tips for Investment Properties

Buying an Investment Property

There is certainly a lot to investing in property. So what should you consider when purchasing an investment property? Buying an investment property continues to be one of Australia’s favourite ways to invest. An investment property should be about increasing your wealth and securing your financial future.

Here are our tops tips:

1. Know your numbers

What is your taxable income? What are your expenses? What is the expected rental income? How much are you looking at spending?

2. What is your borrowing capacity?

Engage the services of a mortgage broker to understand your borrowing capacity

3. Get pre-approved

Once you have established your borrowing capacity, you need to get pre-approved. This will allow you to start actively looking at properties

What is a pre-approval?

4. Engage an investment research house

There is a lot to investing, it is important you get educated first. What is capital growth? What is rental yield? What is negative gearing? What tax benefits are available?

At Mortgage Choice Sydney, we are partnered with some of the industry’s best investment research houses that will educate you on investing.

How to find the right investment property?

5. Buy in an expected growth area

It is important that you purchase in an area that has strong expected capital growth. After all, rental income is important to assist you in holding the property, but choosing a property in a high-growth area will make you money!

6. Be realistic

Don’t think you are going to make money overnight. Property is a long-term asset.

7. Purchase with the numbers

When investing, it is very easy to get caught up in emotions. It is okay if you cannot see yourself living in the property. Pay close attention to the capital growth, yield, and holding costs!

8. Still paying off your home loan?

It isn’t necessary to have your home loan fully paid off prior to investing. Investing whilst you have your home loan is a great idea, as it can assist you in shedding years of that 30 year home loan.

How to save years of your home loan

9. Don’t procrastinate

We see this all the time. The facts are that property values increase at a faster value than what you can save over time. Delaying your decision can mean that you end up spending more for less.

10. Engage the services of an experienced mortgage broker

Dealing with a mortgage broker that has over 25 years of experience helping first home buyers is critical. Apart from selecting the property for you, we can guide you through the entire process and offer the helping help through some of the confusion.