Research and having the right people to help you are the keys when investing in property.
It definitely pays to do your homework on the property market before you dive in, and we’re thrilled to be on board to help you when it comes to financing your decision. Recent share market slides, tight rental markets in most capital cities and a whiff of increase in property prices are seeing many mum and dad investors retreat to bricks and mortar.
Generally, property in Australia is still considered to be a sound investment due to steady and consistent increases over time.
But it’s not a quick win. Property usually has a seven to ten year cycle, with highs, lows and steady stints in between.
Fortunately, an ongoing housing shortage in Australia and a tax system that allows negative gearing on property (where any investment losses can be claimed as tax deductions) continue to favour housing as a solid, long-term investment.
But credit has tightened in the wake of the Global Financial Crisis so lenders are more cautious about who borrows and for what. We are here to help find the right lender and loan for your circumstances in this new environment. We can also wade through the many investment loan options on offer, leaving you more time to find the ideal property.
Here are some tips to help you find the right rental and reap the most rewards.
Unit or house?
House prices often increase in bigger strides than units, offering more potential for capital gain over time. But a rental home also comes with added responsibilities, including gardens and lawns (and sometimes a pool) to maintain.
A unit or townhouse may not increase in value as quickly, but they are generally easier to maintain and may even be easier to rent for that very reason, depending on location, condition and size.
Of course, you’ve heard this before. But location can mean different things when it comes to rental properties. Renters are often looking for maximum convenience so consider properties near schools, major shopping centres and public transport.
Remove the emotion
One of the worst mistakes you can make with any investment is to buy with your heart instead of your head. Remember, your rental property is not your ‘home sweet home’.
A well-presented property is desirable, but think sensible, not swank.
Don’t forget the extras
An investment property requires regular financial commitment beyond the loan repayments. Make sure you have the capacity to cover land and water rates and any maintenance and repair costs. Tenants are entitled to repairs or replacements as quickly as possible under their rental agreement, so you will need to have the means to pay.
Find out about the advantages of using a broker.
Having a broker negotiate an investment property loan on your behalf is the smart way to go as they look to save you time, stress and money. You might be wondering if you’re getting the right possible deal with your existing lender, that’s where we can help compare lenders and loan products to match your circumstances and needs.
Crunch the numbers with our suite of calculators.
Take advantage of our 20 clever calculators including our borrowing power calculator, our loan comparison calculator and our extra repayment calculator. The range of calculators will help give you an idea of the amount you may be able to borrow and what the likely repayments may be.
We have access to hundreds of loans from a wide variety of lenders and will work with you to find the loan that suits your individual circumstances. We can ensure you’re armed with the all the information you need to help you on your way to investing in property, we will do the leg-work for you.
The Smart Home Loan Option
We provide real choice, looking to find you the right deal
We work with multiple lenders, keeping competition alive
We may negotiate a better outcome
We help at a time and place that suits you.
We do the legwork for you
We’re not a large company. You’re loan is looked after by the same person from start to finish.
It’s Your Choice
Finding an investment loan that’s suitable to your budget and needs can be a time consuming and frustrating process. Your personal finance consultant understands the complexities of home loans and finance and can help you find achieve a loan suitable to your budget, goals and lifestyle.