How does one feel dipping their toe into the housing market as an investor these days.
We hear of hot markets needing to cool down, possible rising interest rates and all we see on telly are Sydney and Melbourne properties with prices you cant jump over!
So is it all too hard and not for you?
The one thing to remember is that property investment is not a short term strategy.
In most cases it will be an investment for the long term and over this time there will be high and low interest rates, hot and cold markets and good and bad tenants will come and go.
So don’t lose faith.
If you have equity in your home and want to take that next step then here are a few tips that may ease the stress:
Don’t assume rates will always be low. When doing your calculations add 2% to the interest rate you are looking at and see if it is still affordable
- Make the most of the current low rates by locking in some or all of the loan at a fixed rate
- Look at the property as an investment not as a home you will be living in. Take note of maintenance, rent demand, public transport, shopping, historical growth rates in the suburb or town, car parking etc
- Pick a price point that suits you
- Speak to your Accountant. Their advice from a taxation point of view is extremely important
- Make sure you have some cash or other means (line of credit) to cover you in the event that the property is untenanted or need some maintenance
- Make sure there is adequate Landlord Insurance cover
- A quality land agent to manage the property can be worth their weight in gold.
Most importantly, speak to specialists in the industry. Do your homework and remember it is a long term investment.
So if you want to join the thousands of Australians that are successfully gaining wealth in the property sector your first contact should be to Zobel.
We will help you through the process from finding a property, to setting up a loan package to suit you, insurance needs, wealth advice and conveyancing.
Contact your Local Zobel office today.