Today investment properties are particularly popular as it continues to be Australia’s favourite ways to invest. Australian’s are looking into investing in property to increase their wealth and secure their financial future. It is important to remember firstly that property investment does not always deliver a positive return, so here are a few tips in how to effectively make decisions on your financial investment to assist you in reaching your financial goals:
Choosing the right property at the right price
It is important to look for properties with a high possibility of capital growth so buying in the right place is crucial. To find out about the area you are looking at it is important to do your research, what prices are properties seeling for in the area. Be cautious of buying property in areas that you are not familiar with especially when being approached by real estate marketing interstate properties.
Work out your cash flows
You need to make sure that you can afford and maintain you mortgage repayments in the long run. Financial stress could require you to offload your property at the wrong time which could result in financial loss you want to make sure that you do not have to sell your investment property till you are good and ready.
Find a good property manager and let them do their job
Ensure that you have a good property manager to get the best possible rental return for your property, find good responsible tenants through reference checks, manage your tenants and look after your property through management of maintenance issues and emergency repairs. Your property manager will provide important advice to you in regards to property law, your rights and responsibilities and those of your tenants.
Pick the right mortgage for you
This can make a big difference to your financial well-being so make sure that you research the options available to you when investing in property. Using a trusted financial advisor to assist you in structuring your loan can make all the difference. Do not stop there though make sure you keep researching through the local real estate market. Remember your interest in your investment property is normally tax deductable.
Using Equity from another property in purchasing an investment property
An effective way in buying an investment property is to use equity from another property. By calculating the difference of what your property is currently worth and what you owe on your mortgage will let you know what the equity in your home is. By using the equity from your property you can effectively allow you to borrow more money for your investment property which will in turn increase your tax deductions.