One of the great things about property investment is that anyone can do it. With sufficient research and a good attitude, you may be able to secure your future by property investing.
One of the great things about property investment is that anyone can do it. With sufficient research and a good attitude, you may be able to secure yourself financially for the future by property investing.
But, before taking that leap into the property market, there are a few key considerations to think about.
Manage your cash flow
Organising your finances should be one of the first things you do before you enter the property market. You need to know what your current financial situation is in order to know what price range you can afford when to go house hunting. The best way to do this is to organise a pre-approval. A pre-approval will give you an idea of how much you can borrow and can also help speed up the home loan application process when you do find a property as the groundwork has been completed.
Understanding how much you can borrow is quick and easy and can be completed on the go. To get a quick snapshot of how your loan stacks up, go to our no obligation Quick Quote. It only takes a few minutes and gives an instant response onscreen and an email confirmation of the results. Remember this is indicative only as it is based on the information you input which hasn't been verified.
>By completing an application and supplying your documents lenders like State Custodians will be able to fully verify your details, run a credit check and provide you with a full pre-approval. By forming a relationship with a lender early on, it means that you have someone on hand if you have any questions.
Don’t forget ongoing costs
You’ve done your research and have come to the conclusion that you can afford to purchase a property and meet the mortgage repayments. But what about the other ongoing costs?
>Rates, insurance, maintenance and property management costs are just a few ongoing costs you will need to include in your budget. However, you can cut down on these costs by keeping the property in a good condition (replacing old fixtures before they break) and self-managing the property (not employing a property manager).
Shop around for home loans
Finding a competitive home loan may not be the top priority on your list for buying an investment property, but it can make all the difference and it is not hard to do. There are a number of comparison websites, such as ratecity.com.au and canstar.com.au, that compare a range of different home loan products in the one place.
The type of home loan you obtain should reflect your investment goals.
Location, location, location
There is more to buying a property than just choosing a house. Location is one of the most important factors for investors as it can determine how successful an investment may be down the track.
Identifying an up and coming growth sport has become an ongoing game for those in the property market and most people have their own way to identify which areas are going to see significant growth. In order to find the right area to suit your investment plan, you will need to conduct you own research. Research capital growth and rental yield data. Speak with as many professionals in the industry as you can to get an idea of where they think the market is heading. The free Property Report offered on the State Custodians website provides an overview of recent sales data in your area.
Don’t forget inspections
Inspections may seem like a tedious aspect when buying a property, but they can be a life saver and a huge money saver. Some buyers forgo the building and pest inspections for the sake of saving a few hundred dollars. However, if you end up buying a property infested with termites, that’s thousands of dollars worth of repairs gone down the drain.
Inspections can also be used as a bargaining tool if you wish to negotiate the price. For example, the inspector may find a couple of problems and you can use these to negotiate the price down.