WITH interest rates hovering around record lows and lenders aggressively competing for business, it is unsurprising that investors in Australia continue to dominate the property market.
First-time investors in particular see property not only as a lucrative investment but as a way to future proof their wealth.
According to a recent study conducted by Mortgage Choice, 76 per cent of first-time investors in NSW said they would purchase an investment property to set themselves up financially for the future.
It is important for those locals who are considering purchasing an investment property for the first time to keep in mind that understanding their financial goals and deciding on the right strategy to achieve them is key when making any investment decision.
Moreover, buyers should make certain that the investment will improve their financial situation in the long run.
For locals considering investing in property in the near future, I have put together the following list of considerations when mapping out your purchase strategy:
Picking the property - Knowing when and where to buy is a crucial part of the investment strategy.
Borrowers are encouraged to seek professional advice about the type of property that will maximise their investment.
Buyers' agents know the market better than most and may be a resource for advice or to help with negotiating with property sellers or their agents.
Weighing up positive versus negative gearing - Consult with your financial adviser to find out whether positively or negatively gearing a property is of greater benefit to your overall financial position.
Investigate the tax and legal implications associated with property investment by talking to a financial planner, accountant or solicitor.
Finding the right finance - Get the right finance organised early in the plan, or at least get pre-approval, so you know how much you have to play with.
Assessing the pros and cons of the different loan options can be a daunting task, so don't hesitate to ask for help from a professional mortgage broker, who can help you find a loan for your individual circumstances.
For more information contact Richard Windeyer on 1800 01 LOAN.