5 Tips to Remember When Buying an Investment Property
Introduction
If you’re buying Melbourne’s Luxury Real Estate instead of a primary residence, you’re looking to turn a profit. In Australia, property investment is a popular method of accumulating wealth, but it’s important to consider whether it’s right for you.
“ Make a list of your
objectives and stick to them
Consider both the risks and rewards of property investment. Determine whether or not you can afford the loan repayments without significantly altering your lifestyle, and whether or not you are comfortable with the risks involved, such as a possible decline in market value or significant interest rate rises.
”
“
Do your homework
” Make sure you know how much money you can afford to borrow with an investment loan before you start looking for a home or apartment. Decide if you’re purchasing to use as a source of immediate income or as an investment for the future. Before making a final decision, you can check out the property’s potential for growth in value, rental income, and costs with me for the best real estate guidance in Australia.
“ Organize your finances & stick to them
”
Most lenders require a deposit of 10% to 20% of the total loan amount. Aside from the deposit, you’ll also have to pay for closing costs, legal and conveyancing fees, insurance, maintenance, and interest on any loans you take out. Examine the potential impact on your investment of the cost of your borrowings, as well as your various loan options and the potential fluctuations in interest rates. You might also think about taking out a fixed-rate loan to cover some of your borrowing costs, which would essentially lock in your interest costs for the foreseeable future. I suggest going through my blog to find out all you should know before buying an investment property.
“
Expenses other than the budgeted amount
”
Costs such as these should be taken into account when evaluating a property. Estimates of vacancy costs (including lost rent and advertising) and other charges such as landlords’ insurance etc. It’s possible that you’ll want to set aside money for home improvements down the road.
“Determine who will be in
charge of overseeing the property
”
Assign a suitable person whom you trust and who is capable enough to oversee your property. You may also consider hiring a top real estate agent if you’re short on time or live far from your investment property. Make sure to factor in property management fees when making this decision.
5 Tips to Remember When Buying an Inv estment Property
Thank You
At PB Property, we help you find the best property to suit your needs. Feel free to contact me for any guidance in this regard.