Deciding to buy a rental property can be a big step towards building financial freedom. Before buying a property though, it’s important to consider your financial goals. Are you looking for a property that will give you rental income now, or are you wanting the property to grow in value and provide you with a windfall down the track when you sell it? 

In many Australian suburbs, property prices are increasingly more rapidly than rental rates. Many investors therefore are negatively gearing their property, with the difference between rental income and interest payments being offset against tax. For these investors, the plan is that the property will increase in value, either through market growth, renovation or a combination of the two. This results in a capital gain at the point of sale.

For other investors, especially those looking to use property to fund retirement, a cashflow positive property that produces income from rent is more desirable.

Our financial planners can help you to determine what property investment strategy is right for your circumstances. Then, Shore Financial’s experienced team of mortgage brokers can make sure you’re getting the best loan for your needs. We can provide you with guidance on the various loan types and ensure that you’re getting the most competitive loan possible. To arrange an appointment, phone us on 1300 416 700.