So, you’re thinking about taking another step on the property ladder and purchasing an investment property? Congrats, it’s time to celebrate! But before you do, we recommend doing some research to further understand your current position and what property investment means for you. Here are 5 questions to ask yourself before buying an investment property.
1. What are my property investment goals?
Before making any decisions, it can be useful to consider the why before the how when it comes to achieving your finance goals. Why are you thinking about purchasing an investment property? What purpose will it serve? What end goal are you trying to achieve? The answers to these questions may help to inform some of your choices down the track.
2. How strong is my current financial position?
Before developing an investment strategy, it’s important to have a solid understanding of your financial position. Consider asking a finance professional to look at your finances before you finalise a budget. How much equity do you have in your other property? Also think about how the investment may impact your current lifestyle.
3. What is my property investment strategy?
Consider speaking to a financial expert to help you develop an investment strategy. For instance, have you thought about how long you plan on holding the investment? Are you thinking about buying an established property, or off-the-plan? What are the various pros and cons?
4. Am I ready to buy when the opportunity arises?
House hunting can be an unpredictable exercise and you never know when the right property might pop up. When it does, you can’t afford to waste any time so it’s important to have all your ducks in a row.
5. How do I find a loan that’s right for me?
Finding the right investment loan and setting up the right structure is important. We can assess your borrowing capacity and help you to identify the right finance solution for your situation.
