Investing in property is becoming increasingly popular as a way to grow your long-term wealth. A highly effective strategy for capital growth, property investment can also give you access to extra funds as you go, if you choose to refinance your loan to free up equity. Most investment properties are rented out to tenants, whose rent payments will contribute to the property’s mortgage.
Property investment can be highly worthwhile, but there are several things you need to consider about when and where to purchase, and what you will be able to afford.
What you need to consider
Buying an investment property is by no means a one-size-fits-all process. There are some important things you will need to think about before making a decision to purchase:
- What property to invest in
When choosing an investment property, it’s important to consider how much its value is likely to increase in the future, and the amount of income you can get from tenants. To do this, you will need to look at the value of other properties in the area, and consider fluctuations in the housing market. Our experienced team can help you with this process.
- How much you can borrow
Lenders usually need a 5% to 10% deposit for an investment home loan, so you will need to find a property you can afford. You will also have other costs, including stamp duty, loan application fees, conveyancing, and lenders mortgage insurance.
We place huge emphasis on educating our clients, so that they can be personally confident in their decision.
Let us keep you updated with the latest information so you can reach your goals faster.