NOT SURE IF YOU ARE ABLE TO PURCHASE AN INVESTMENT PROPERTY?
WOULD YOU LIKE TO KNOW IF THIS IS A POSSIBILITY FOR YOU?
Investing in residential investment property is not for everyone
- Yes, some tenants are easier to deal with than others
- Yes, some don’t pay their rent on time…but lots do
- Hang onto your good tenants and treat them well and keep the property up to a good standard.
- Tenants are people who are paying your mortgage and looking after your property
- If you are a first time investor I would recommend that you have your property managed professionally by a rental management company who can handle the various issues that come up.
- Get an education about property investing so that you find out which strategy appeals to you most.
- There is no “one’ right way to invest in property, Whatever one investor says not to do, another makes money and enjoys it.
WHAT PRICE PROPERTY CAN YOU AFFORD?
We just need some basic financial details to see if you are in the ballpark to qualify to purchase an investment property. Depending on the area where you live you may be pleasantly surprised, given the lower interest rates available at present. Did you know that by owning an investment you will most likely pay less tax which in turn helps fund the property along with the rental income? Property goes up in value over the long term, even with the dips in the market place. Your $$ will be worth more than sitting in the bank while your tenants help fund the home. When we work out what you can afford then we also take into account the expected rental income. The better the property income, the more you can borrow.
It would be good to do your research so that you get an indication of the rental income you can expect for the price bracket property you are hoping to purchase. Generally you need 20% deposit to purchase an investment property. This can either be saved deposit or equity from an existing property Different areas in the country have different price brackets and property incomes. The rents can be substantially higher in one area compared to another for a similar price property.
Some investors like to have their properties reasonably close by so that they can keep an eye on them yet others don’t mind if the property is in another part of the country. If renovations are needed and you have the skills then obviously it is handier to have the property reasonably close. Alternatively the property management company will have contractors to do the work but of course this costs more. Find out how the rich make their money by making their money work for them.