Our mortgage brokers have a lot of experience in writing home loans for investors in Rockingham, Baldivis and Kwinana. We have noticed that many first-time investors come in woefully unprepared to buy investment property, so we would like to provide some tips for inexperienced investors.
Select the Right Property
Mortgage brokers and investors in Rockingham, Kwinana and Baldivis currently have the luxury of knowing that nearly any property has the potential to be the right property, but there are some things we see as essential.
We recommend properties in areas that are poised for capital growth. We also recommend that those properties be attractive to renters. This leads us to our next tip.
Do the Math
You want a property that will provide positive cash flow if possible. This means you will have to know all of your costs going in. This includes Stamp Duty, Land Tax, Capital Gains Tax, your projected rental income and any expenses for maintaining the property. This leads into another suggestion.
Assemble a Team
You will need a mortgage broker, a buyer’s agent, a financial planner, a property manager and an accountant at the very least. They are well worth any money you will spend and mortgage brokers don’t charge you anything.
The Right Mortgage
There are a lot of different credit products on the market. While we can’t really give more than general advice without your specific information, we can tell you that you need to know which borrowing costs are deductible and which ones aren’t. You will need to decide between a variable rate loan or a fixed rate loan.
Equity from Another Property
Equity from any property, whether it is your home or another investment property, can be a great resource that allows you to buy more properties.
Hire your own inspector to make sure your property doesn’t have any “surprises” in store for you. Check for both superficial and structural damage. If you find structural damage, either have it repaired before you buy or move on to another property.
Invest for Long-Term Gains
In all of Australia’s history, anyone who has kept a well-maintained home more than 20 years has seen significant return on investment.
Call (08) 9527 1800 today.