4 top tips for getting more from your investment
Whether you are building your property investment portfolio, buying a holiday house or supporting a family member, there is always a lot to consider before you take that next step.
In this news post, KL Realty’s expert property managers tell you the four things you should do before you buy a second investment property.
1) Think about your cashflow
Property tends to be a long-term investment, so do your sums to make sure you can afford the ongoing repayments on two mortgages. Think about any major life changes, such as planning to expand your family, or whether you might need to support a parent in the coming years.
2) Get to know the market and location
Research what is happening in the current market, and think about whether it’s the right time for you to buy. Get to know the area you are considering by speaking to residents and real estate agents. It’s also wise to investigate the short and long-term planning for the area – for example, nearby construction may affect your ability to find a tenant.
3) Investigate before you invest
If you’re buying a property as an investment, consider its location carefully. Buying in a high-demand area is likely to see you enjoy a constant flow of income from rent.
You will need to provide your lender with a rental appraisal estimate letter. Keep in mind that lenders generally only take 50–80% of the rental income into account when calculating whether you can afford the loan.
4) Choose the right mortgage
The amount you can borrow and the type of loan you choose will depend on various factors, including the equity in your current home, your income and expenses, and your property valuation. It helps to get quality advice on the right mortgage for you, along with other considerations, such as negative gearing, and how to structure your loan to maximise tax effectiveness.
Contact KL Realty for expert advice on property management
Your investment property is one of your most valuable assets. As a pivotal component of your financial future, it shouldn’t be managed by just anyone! For expert advice and the communication you expect and deserve, call KL Realty on 0432 609 240 or contact us online.