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Thinking of buying an Investment Property?

Buying an investment property can a great investment, but it pays to do your research and get professional advice before jumping in. In most cases, you’ll need to rent your property; but, there is a lot to learn about being a landlord. Most first-time investors are not well informed about the property market or what is required to make a profit.

How to Buy an Investment Property—Getting Good Advice

Owning a property you live in is very different from purchasing an investment property. As an owner, you’ve done well on your home investment, but the rental market is different. The demographic make-up of Australia has changed significantly over the past few years and continues to change. Properties that were a good investment 20-years ago, or even 5-years ago may not perform well today.

Investors in managed funds regularly get the advice of a financial advisor. Your advisor learns everything about your financial situation so that they could give you the best advice. You would receive a financial document called a Statement of Advice that covers as asset allocation, risk mitigation, diversification, personal insurances, budgeting and the list goes on.

Compare this to the research the average person undertakes to purchase a $500,000.00 property for investment:

  • Talking to the local agent
  • Some searches on realestate.com.au
  • Driving around some open houses

This does not constitute rigorous research when you sit back and consider that property is a much less liquid asset. It takes longer to sell, costs much more in agent’s fees, and requires active management.

There is a Better Way—Start Your Search with a Mortgage Broker

The first step for any potential property investor is to see their primary adviser in finance- the Mortgage Broker. The broker will help you work out your borrowing capacity, comfort levels, cash flow requirements, other asset holdings and more. She will work with you to find the best investment property loans and the best terms.

The Mortgage Broker can also refer you to a property specialist who will take you through an education process to learn all you can about the marketplace and present some options that would best suit your individual circumstances.

The mortgage broker and property specialist are your allies in finding the best investment for your circumstances and abilities. Before you begin your property investment adventure, contact Deb at 02 4940 4602. She’ll give you good advice and help you get the best deal.

How to Find a Mortgage Broker

Deb McDonald-Cocks is a Commercial and Residential Mortgage Broker. As a large volume writer, she has access to many “priority” channels in the banks and is able to negotiate the best rates possible. Deb is an expert at creative solutions that look at long term strategy and strategic loan structures.

Contact Deb on 02 4940 4602