A combination of strong currency, resource growth and economic prosperity makes Australia an ideal location for property investment, but how does one become an investor?
Taking that first step into the world of ownership-for-profit can be intimidating, but remember – you don’t have to be inordinately wealthy to get a piece of the pie.
Buying a second property can be the solution to a lot of different goals – including giving your children a head start by buying their first home, buying a vacation home, earning a second income or planning for your retirement.
This may sound all well and good but what you are probably thinking is, how can I afford a second home when I’m still paying off my first one?
Flexible lending options
There are property investment loans out there that can help aspiring investors achieve their real estate goals without breaking the bank.
Lower interest rate loans with flexible lending options can make the difference for lenders – the money saved is often significant enough to make the decision to pass or buy.
Refinancing may also be an option, depending on your existing loan and the terms attached to transferring your mortgage.
Where should I start?
If you would like to secure a cheap home loan and begin your venture into property investment, you may wish to first revisit the terms of your existing home loan.
Then, it is advisable to input estimated figures into a mortgage calculator to determine what your payments would be and compare that to your expected income.
Try a variety of scenarios before making any final decisions and make sure you do your homework before signing on the dotted line.
Real estate can be a lucrative way to earn extra income, but every investment holds a certain amount of risk so it is recommended that you get a comprehensive view of your intended strategy before any significant commitments are made.
A MyRate review of your financial circumstances might help to identify potential risky scenarios in the hope that they can be avoided.