Property prices in Sydney and Melbourne are finally cooling, which means people are again considering getting involved in property investment as a vehicle for greater wealth or retirement.
We do not believe it should be impossible, or even a huge sacrifice, to get into the home investment market. That’s why we’ve created this short guide that offers some key tips to get started with property investment. Some of these tips you may have read before, some may be new, but all are useful.
If you already own a home and have some equity in it, you can leverage this to purchase another property as an investment. Using the equity in your home is a great way to make an existing asset work for you. It can also give you a simple way to purchase another property without having to save for the full deposit.
Even if you do not have equity in an existing home, you have other options available. Read on to find out more about how to get started with property investment.
Looking for a quality home loan for property investment? Buddii has a range of great home loan options available, and we can match you with the perfect provider for your investment success.
Speak To A Professional About Your Options
One of the first people you will need to talk to when starting out with property investment is a mortgage broker. A mortgage broker is someone who works with home loans day in and day out, and they can go through your options quickly for you.
When speaking to your broker, make sure you discuss all your options and potential future choices.
For example, if you’re looking to refinance your investment property down the line, make sure you share this with your broker because they will ensure you get a home loan that can be refinanced easily.
Your mortgage broker can help you secure a home loan that truly serves you, instead of hindering you.
Work Out Your Investment Goals
Property investment can serve a range or purposes, from providing an income in retirement through to providing financial stability as you put your kids through school. You should look at whether you want to hope for capital growth or are looking to get an income through rent.
When you know what you want from your property investment, you can make better choices about the type of property you should buy.
Consider The Ownership Structure
While you can own a property in your own name, there are plenty of other options that can provide other taxation benefits. You might like to speak to your accountant here and ensure that they give you advice about your options.
For example, a trust structure might work for your investment goals, or you might even consider property investment through a self-managed super fund.
The type of structure you choose will depend largely on the goals you have identified – so make sure you don’t skip this important step.
Get A Great Property Investment Team Together
You will need a great mortgage broker to ensure you have access to the most suitable loans, but you will also need a great accountant to make sure you’re buying it the right way.
You’ll also benefit from having a real estate agent who can help you understand your local market, a conveyancer who can manage your property purchase, and a great building inspector who can make sure you are not buying a dud property.
This team of advisors and experts will be on your side to make sure your property purchase makes a positive mark on your future.
Do Your Research
There’s an adage that says you make your money on the property purchase. What this means is that the more you can save through negotiation and buying the right property, the better off you are in the end.
To make sure you are investing in the best possible property, you will need to do your research. Engage your real estate agent and let them know what you are looking for.
Go online and scour the real estate ads for more choices. Consider engaging a buyer’s agent who often has access to pre-release properties and new listings before they even hit the market.
Above all, make sure you have the right home loan mortgage ready to go when you’re ready to make your purchase. That way, you do not miss out on a great buy. Happy investing!