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Have you decided to invest in property? You may be wondering what's next, and how you're going to make it happen. Aside from hunting for a property that you want to buy, there are a few other things worth doing upfront.

Set some targets

  • Like any other investment, property investment is a way of making your money work for you. That means it's important to set some targets and plan your returns. Investing in property is about growing the value of your money. This can be achieved either by using the rent to pay off your home loan, or through the value of your property increasing if the market goes up.

  • The property market works on long cycles so it's worth taking note of whether it's trending up or down when you're considering your options. Take into consideration the expenses you're going to incur for maintenance, property management and insurance. It's also important to note that property is considered a long-term investment, so don't despair if over a short period of time the investment doesn't seem to be delivering on your goals.

Think about logistics

  • Investing in property can make it worthwhile to consult with a financial adviser or mortgage adviser, insurance adviser and/or accountant. It’s important to understand the tax implications of any investment and you could also benefit from some expert advice when it comes to planning your insurance.

  • A financial or mortgage adviser could help you make the most of your options across your property portfolio. That includes setting up a home loan and managing your deposit and repayments.

Plan your home loan

  • You can choose to find your ideal home loan before or after you find your ideal home. Sometimes it can help to have a pre-approval lined up, especially if you are buying at auction or in a competitive market.

  • Usually it’s up to you to decide what kind of loan you want for your property. You can choose between fixed or floating, or a combination of the two. Fixed loans can be beneficial as they make it easier to plan your budget and know exactly how much your loan is going to cost. Floating or variable rates allow you to make extra or bigger payments which can help you to pay off your loan sooner.

Check your LVR

  • It’s a good idea to explore your options early on so you know exactly how much deposit you might need. Investors in property are often required to have an LVR of 60 percent. That means putting in a deposit of 40 percent of more.

  • But some lenders, like RESIMAC Direct, may not be as rigid with the required LVR or may be able to take your wider financial position into consideration when structuring your loan. Working with a mortgage adviser can be a good way to explore all your options.

If you’re ready to become a property investor it pays to explore your options. It’s a good idea to start by getting a good idea of what you want to achieve. Then you can talk to home loan providers like RESIMAC Direct and find out what’s possible.

 
  • Use a calculator to get an estimate of how much you can borrow.
    Try one here

  • See if you qualify. To get a more accurate idea of how much you can borrow with RESIMAC Direct,
    click here

  • Call our Lending Specialists and they can do the calculation for you over the phone plus answer any questions you have at the time. Talk to us on 0800 466 656