When investing in property it is essential to review your finances. For some this takes preparation. To make yourself more eligible for an investment follow these guides:
- Stable income, firstly an investment property should be and long term investment not a form of income. When looking to buy an investment property, lenders like to see investors with secure stable incomes and clean credit with good ratings.
- Have at least 20% deposit. You may also have to show that you have equity in other properties if you want to borrow more.
- To prove that you have saved the money yourself and that you can handle the finances. Some Australian lenders will ask to see a certain amount of cash deposited or accrued as a deposit into a bank account over a period of time.
Cash Flow Analysis
Once you invest, you have to remember plenty of costs associated with an investment property, from board fees to property management fees to insurance, and more. Make sure these are correctly calculated into your investment returns to cover yourself for extra costs out of your potential profits. Once you have worked out your purchase returns it is now time to factor in your those extra fees these include and not limited to:
- Building and Pest Inspection Fees
- Mortgage Insurance
- Transfer Fees and;
- Ongoing Maintenance Costs.
View Multiple Places and Get to Know the Area
When you look at multiple investment properties in several areas, you get a better understanding of the real value of the dwellings. This will give you more clarity on which property will secure your financial goal. Understanding how the area will perform in rental returns and capital growth is important to buying a solid investment. Speak to the neighbours and get to know what kind of socio-economic group live there.
Information on this page provided by us has been provided for general information purposes only. For our professional advice call SAS 2000 now on. We’ve helped many first home investors secure lucrative investment properties across southeast Queensland.