Home News Investing in 2014

Investing in 2014

Font size :
 
Q. We are considering entering the property market next year and purchasing our first investment property. What type of things do we need to check to ensure we are ready to take that next step?

A. Purchasing an investment property is a big commitment, so it is important to make sure you are ready. There are several signs which may show you are ready to enter the property market. 

You’re financially stable: If you have a stable career, good income and a strong saving pattern, you may be in a good financial position to take out a home loan. Of course, there are times of instability where unplanned costs pop up (eg. car repairs). But if you feel you are financially stable to handle any unexpected expenses as well as your other every day costs, you may be financially ready for a mortgage. But it is important to remember that even if you are going to use the rental income to cover the mortgage repayments, you still need to plan for vacancy periods to ensure you can cover the mortgage repayments during that time.

You have definite goals: Knowing where you want to be in the next 10 to 30 years will be extremely beneficial if you are considering investing in property. For example, if you have a certain age you would like to retire at and want to use the rental income to live off, then it will influence what type of home loan you will need. 

Plenty of research: If you have been researching home loans, locations and property types for a while now, it will help you make an informed decision. Deciding to purchase an investment property on a whim could possibly result in disaster as you may not be financially or mentally prepared for the commitment. 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Many millennials are relying on an inheritance to buy homes Many millennials are relying on an inheritance to buy homes

Lawyers are seeing cases where disputes over inheritance have created tensions within families Read more

Gen Y homeowners fearful of interest rate rises Gen Y homeowners fearful of interest rate rises Many are worried rising interest rates will negatively impact their cost of living expenses, according to a new survey ... Read more

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership Many would rather ‘rentvest’ than be tied down to a costly owner-occupier mortgage, according to new studies ... Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Aug 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords