5 Steps to Get You Started in Property Investment
29 May 2015 M'OR Mortgage Options
Have you been thinking about property investment for a while now, but haven’t actually done anything about it? Over the last 15 years MO’R Mortgage Options have assisted thousands of clients grow their investment portfolios.
Here are 5 top tips from MO’R Mortgage Options to get you started.
1. Create a plan
What do you want to achieve by investing in property? Are you looking for capital gains over a set period of time, or are you more interested in generating rental income? It’s important to set these objectives from the beginning, as this will determine what type of property you should be looking for. For example – an apartment vs a house? A new property vs. an established property?
Without a clear idea of what you are hoping to achieve, you’ll find it hard to make these decisions.
2. Understand your limits
It is important to know your own limits and how much you can borrow from a lenders perspective, before you start building or expand your portfolio.
You want to determine how much deposit you have available through savings or equity (or both), and how much your income will allow you to borrow. Once you know these things, you’ll have a good idea of your maximum purchase price.
Luckily, this is an area MMO specialise in. Once you know your borrowing capacity, your MMO mortgage broker can set up a pre-approval for an investment purchase, so you can go property hunting with confidence.
3. Select the right loan for your long term investment goals
There are a multitude of lenders out there each with different products. Choosing the right one can help you achieve your personal investment goals. Some loans are better suited to investors, and some lenders are happier to lend money to property investors than others. It’s important to get it right.
Ensuring the loan structure matches your long-term investment goals is also essential. It can help you to have the right balance of deductible ‘good’ debt vs. non-deductible ‘bad’ debt. It can even help you to buy additional investment properties.
MMO have access to a number of different loans and lenders and with over 60 years combined experience helping property investors with their loan structures, so they can help you too select the one that is right for you.
4. Do your research
Understand the area in which you are looking to buy. Is it an area close to things that tenants generally look for? Things like: public transport, parks, schools and major shopping centres. You should also look at property market data to find areas of strong growth, and/ or low vacancy rates.
When you’ve found a property that fits with your plan, make sure you review the independent building and pest inspections reports. They’ll not only alert you to any faults in the property, but they may also help you negotiate with the vendors on price should you decide to make an offer.
5. Take the first step!
Doing something for the first time can be a daunting step, and it can be easy to get stuck “doing your research” without actually ever purchasing a property. Whilst you can never have too much knowledge, sometimes you just need to take that leap of faith and actually commit to a purchase.
If you’re looking for some assistance to start or grow your investment property portfolio, just give MO’R Mortgage Options a call. They can help you every step of the way.
MO’R Mortgage Options are a local family owned business under the guidance of Michael O’Reilly. Michael and his team of professionals have extensive experience in the mortgage industry and provide exceptional service to their clients. It is for this reason that MO’R Mortgage Options are our trusted and preferred recommendation to our friends and clients.