If you use the basic premise of buying at the bottom and selling at the top of the property market, then it’s certainly time to look to buy. Most investors make the mistake of waiting until things are looking up before getting into the property market or making their next purchase. It seems to be a buyer’s paradise at the moment with lots of stock at reasonable prices with an ever increasing rental price… looks like it’s ticking all the right boxes to me.
There are basic things to do first like seeing your Accountant for tax advice and maybe even talking to a Financial Planner to reassure you that you’re on the right path, then the most obvious thing is to make sure you are comfortable with the loan repayments, etc. and that you’ve done your due diligence… if that’s all done then maybe you should be out there shopping.
Historically in Western Australia, property prices double every 7-10 years. Buying near the bottom of a property cycle certainly gives you the most likelihood of achieving this. Capital Growth in this property and eventually selling to enjoy that profit could have you owning your own home and being Mortgage Free a lot sooner. Having a rental property with a tenant via paying rent, assisting with your repayments plus you may have negative gearing and depreciation benefits each year. This effectively gives you an asset worth a substantial amount of money, costing you relatively little each year compared to a normal home loan on your own house.
Talking to a Mortgage Broker is a good step in the right direction. You can ascertain whether you can afford the loan and be comfortable with this as a long term investment.
In the end you have to be able to sleep at night but the potential to pay off your home loan a lot sooner by making money on another property is certainly worth considering.
It’s your decision not mine, I just get you the finance but it is a decision that could set you up for years to come.
Give it some thought.