HOME > BLOG > Investing > Are you ready to invest in property in 2015?

If you are considering investing in property next year, you need to make sure you are ready for the commitment. There are several signs which may indicate you are ready to jump into the property market.

These include:

You’re financially stable
There is often periods of time when things are unstable. This could include changing jobs rapidly, having a baby and going back to one income for a period or large expenses hitting like having to replace a car before you were planning etc. At other times it is smooth sailing, with a stable career, good income and a solid savings pattern. All these things are a good sign for you and your lender that you might be in a position to purchase property.

When you apply for a home loan, your repayment history will also be an important factor so if you have been paying bills and other financial commitments on time without any problems, it will improve your financial credibility.

It is important to remember that even if you are planning to use the rental income from the new investment property to help meet the repayments on the mortgage, you need to plan for the potential for some vacancy periods where you will have to cover the mortgage repayments without it.

You have clear goals
Do you know where you want to be in the next 10, 20 and 30 years both personally and financially? For example, knowing whether you want consistent rental income or long term capital growth will affect the type of property you look for. Also, if you have a goal to retire at a certain age and live off the rental income, it may affect the type of home loan you’ll need. For example, if you are looking to pay off the home loan quickly, you may opt for a principle and interest repayments over a shorter loan term, with features such as unlimited extra repayments, an offset account and free redraw.

You have an expert team
There are several experts that can help you purchase and manage your property. Although you may not need all of them, it is still worth considering each one. Your team might consist of:

•Mortgage lender
•Financial Planner
•Property Manager

Before you purchase an investment property, take time to research each one of these to see if it would be beneficial for you to have them on board.

You have been doing your research
Investing in property is not a decision you should make on a whim. Although property investing can help put you in a better financial position, it can go terribly wrong if you don’t do your research.

If property investing has been on your mind for the past few months or years and you have been researching home loans, properties and locations, this will help you make an informed decision about when and where to buy. There are plenty of tools online to help you compare different properties and locations. An example is our free property report that provides details of actual property sales, rent returns and demographics for your suburb.