And you may be spot on the money! Thanks to the combination of low interest rates and high rental yields, property investment may now deliver cash flow neutral or even cash flow positive returns – and that could mean that your property can pay for itself.
Moreover, there may be significant tax breaks to boot. Successful property investment does require homework and a little prudence.
But don’t be put off – it is by no means too complex for the average Australian. So whether you’re a seasoned investor or a would-be first timer now may just be the ideal time to make it happen.
Know your capacity
Before you decide what to buy you need to establish your budget. With a clear idea of what you can afford to borrow you’ll be in a strong position to determine what type of property to focus on and in which price bracket.
Not only can we quickly give you an indication of your borrowing capacity we can even help you secure a pre-approved loan. Our initial discussion will not cost you anything, just your time or a quick phone call.
Once you know your buying power you can think about what type of property to purchase. Most investors favour residential property, typically a house or a unit. Each comes with its pros and cons and there’s no right or wrong decision – it really depends on the buyer’s preference.
Do your homework
Regardless of the property type, the location can make the difference between a good investment and a lemon. While there can be exceptions, you’re generally looking for a property that is close to public transport, has easy access to shops, parks, schools and restaurants, plus serviced by good road infrastructure.
With a clear idea of the right location you can set about researching the market. The internet is without doubt one of the most effective research options available to investors. As well as researching all the properties that are for sale you’ll also be able to assess what kind of rental values other properties in the area are achieving. Be sure to also give us a call – we can run you through the various financing scenarios and products available to match your investment goals.
Remember, for the greatest success, property investment should not be considered as a short-term game. Rental values will always increase over time with a well located property and so too will your returns.
Contact us to see how we can kick start your investment property portfolio.