First and major step is to create a team of professionals. These professionals can help you with building your property portfolio . It is strongnly recomnded to ask your friends and family if they have used the services of a professional and they would like to recomnded. There professional are :
Home Loan Experts at Josh Financeial Services will discuss your plans and your circumstances with you to determine what you can afford. Your broker will also provide statutory documentation to initiate the lending process and work out for you what loan products will be appropriate in your circumstances.
Your borrowing power depends on your income and financial commitments, as well as your current savings and your credit history. It also depends on your living expenses, so you can repay your loan. Once you know your budget contact Experts at Josh Financial Services to arrange a pre-approval. It is recommended that you get pre-approval for an amount so you can go searching for a property with certainty based on how much you can spend.
Most of the lenders can lend up to 90% of the property value, however, you will need to show you have at least 5% of the property value in genuine savings.
Your borrowing capacity and interest rate will depend on the type of repayment you select like Principal and interest or interest only.
When purchasing an investment property there is a certain cost involved. Here is the list most common ones.
There is a range of additional costs involved when purchasing a property.
Conveyancing is a necessary process in buying a property. A conveyancer or conveyancing solicitor helps with the settlement and title transfer process . The also ensure that their client is meeting all legal obligations and that their client’s rights are protected during this transaction. They will also arrange proeprty inpections and guide you if there are issues with building.
It is always advised that you do you won research as you are the one investing in property. You can also seek professional advice from your accountant, real estate agent, buyers agent or property adviser. Josh Financial services can help your find the right property and they can also advise you what to buy and most importantly what not to buy.
One of the things you need to consider when buying a property is if you would like to buy an old or new property Other criteria if to buy a uni, townhouse or an independent house.
Also, you will need to find out information about the local market you are considering buying in, what are properties selling for, how long are they on the market, etc. In addition, it is recommended to gather information on the demographics of the suburb, its location to important amenities such as transport, shops, universities, and schools, etc.
It is strongly recommended that you don’t become emotionally attached to the property. Treat it like a business and it’s an investment, and your focus should be on maximizing capital and cash flow.
The buying process for your investment property involves the following:
After you find the property next step is to decide if you like to use the services of a property manager or manage it yourself. It is always recommended to use the services of a professional property manager as they can avoid you the headaches down the track.
Once your investment property is settled and you have reliable tenants paying their weekly rent. Now you need to keep a record of your the rent you receive (if self-managing), the interest you pay the bank and other costs like repairs, council rates water rates. In addition, it is always recommended to obtain a depreciation schedule. Follow the link to find out expense you can claim on an investment property.
If you are using the services of a property manager they will keep a record of your monthly income and expenses and be able to provide you with a statement each month and at the end of the financial year for your accountant.
Make sure you seek professional advice from Finacial Adviser or accountant to determine whether property investing for your individual needs.
If you have any more questions about Property Investment, talk to our experts on 1300 537 000.
This article is for information only; please seek advice from a tax adviser or accountnat before making any decisions.