But, before taking that leap into the property market, there are a few key considerations to think about.
Manage your finances
Your finances should be one of the initial factors to consider before taking the leap into the property market. You need to know what your current financial situation is in order to know what price range you can afford when to go house hunting. The best way to do this is to organise a pre-approval. A pre-approval will give you an idea of how much you can borrow and can also help speed up the home loan application process when you do find a property as the groundwork has been completed.
By filling out an application and supplying your documents, lenders will be able to fully verify your details, run a credit check and provide you with a full pre-approval. By forming a relationship with a lender early on, it means that you have someone on hand if you have any questions.
Don’t forget ongoing costs
You may have done extensive research and made up your mind that you can afford the property and the mortgage repayments, but have you included the ongoing costs in your budget?
Rates, insurance, maintenance and property management costs are just a few ongoing costs you will need to include in your budget. However, you can cut down on these costs by keeping the property in a good condition (replacing old fixtures before they break) and self-managing the property (not employing a property manager).
Home loan shopping
Finding a competitive home loan may not be the top priority on your list for buying an investment property, but it can make all the difference and it is not hard to do. There are a number of comparison websites, such as ratecity.com.au and canstar.com.au, that compare a range of different home loan products in the one place.
The type of home loan you obtain should reflect your investment goals.
The benefits of location
When choosing a property, it is important to not just look at the property itself, but also research the area around it. Location is one of the most important factors for investors as it can determine how successful an investment may be down the track.
Identifying an up and coming growth sport has become an ongoing game for those in the property market and most people have their own way to identify which areas are going to see significant growth. In order to find the right area to suit your investment plan, you will need to conduct you own research. Research capital growth and rental yield data. Speak with as many professionals in the industry as you can to get an idea of where they think the market is heading.
Anouska Linz is Manager, Online Sales at State Custodians and has over 10 years’ experience in financial services, both in broking and banking. Holding a bachelors degree in accounting, Anouska quickly discovered a love for mortgage lending and assisting people to achieve their home ownership goals. She leads a team of highly experienced lending specialists who are passionate about finding lending solutions which result in real wins for the customer. She is also a massive netball fan.
For more information on our home loans, visit www.statecustodians.com.au or call 13 72 62.