Buying an investment property
Investment property loans are essential tools for aspiring property investors looking to expand their portfolio and generate passive income. Securing the right loan for an investment property can significantly impact your financial success and long-term wealth-building strategy. There are many reasons why investing in property continues to be a popular choice for Australian investors. Since 1993, median house and unit values have increased by 412% and 316% respectively, providing Australian homeowners with a significant wealth boost.
Some things you need to consider when investing in property:
- Deposit – where are you getting the deposit for your investment property purchase? Do you have savings in cash, or will you use equity in your existing home?
- Suburb – Look for areas where high growth is expected, so there is potential for capital gains. Ensure public transport is easily accessible and the neighbourhood is safe.
- Rental yield – Look for areas where rental return is high in relation to property value.
- Vacancy rates – Find out about the vacancy rates in the neighbourhood. A high vacancy rate may indicate a less desirable area, which could make it harder to rent the property out or sell it in the future.
- Planning – Find out about proposed changes in the suburb that may affect future property prices. Things like new developments or zoning changes can affect the future value of a property.
