It seems there is a range of Australians looking to take a piece of the property pie and will go above and beyond to get it.
According to the Australian Bureau of Statistics, investor lending made up 40% of lending commitments in February 2015. With investors dominating the property market, many first home buyers are missing out on properties that are in their ideal price range and location they want to live in. However, they can still enter the property market, just by taking a different strategy.
Buying a first home as an investment can have long term benefits and help put young Australians in a better financial position :-
Finance is one of the first things first time buyers need to consider when they are thinking about purchasing a property. Some lenders may require a larger deposit for an investment purchase. Also, at the moment, the proposed mortgage repayments may be affordable, but if interest rates were to rise, the repayments may increase too.
As the property market is so competitive, the more preparation you can do, the better chance you will have at winning a property over someone else. This is where obtaining a pre-approval and maintaining a close relationship with your lender comes in. A home loan pre-approval will put you one step ahead of other buyers and vendors may see you as a more qualified buyer as you already have your finances in order. By keeping in close contact with your lender, they will be able to act quickly on finalising your full approval as soon as your offer is accepted.
At State Custodians, we can help you from start to finish. Whether you need help working out how much of a deposit you need or you would like a home loan pre approval, our team is here to help. Give our Lending Specialists a call on 13 72 62 or enter your details here for them to contact you.