The Australian real estate market has become a lucrative arena for several investors. However, investment in properties could be a daunting experience especially if you have no previous clue about it.
Here are some steps that can ease down your process of investment and make you an informed decision maker:
1. Developing an investment plan – why are you investing? What are your motives behind the investment? What is your long-term strategy? Do you want to sell at higher prices or retain properties for capital growth? Understand why you are investing. Develop a clear roadmap strategy with a qualified mortgage financing company to get professional legal advice in property investment. This would make it easier than ever for you to achieve your goals. If your goal is to gain rental income on long-term purpose, you need to invest in locations high in demand by the tenants.
2. Getting pre-approval of loans – How much can you borrow? Consult about it with the mortgage financing company so that you know the financial limits and your ability to invest within those limits. Investment loans are of different types than simply home loans due to the interest being tax deductible completely. This makes such investment a favorable option as compared to other investments available in other sectors. Moreover, the first 50% income earned from capital gains, is also exempted from tax. This makes investment loans a favorable option in Australia.
3. Getting the right type of investment loan – the right type of investment loan could become the key to your financial success in property investment. Consult with the lender to see what options you have got laid on the table and decide based on your objectives.
4. Research on the location – investment in property is often a cumbersome process, due to which you need to select. Do a research with qualified real estate appraisers for the type of property high in demand for investment purposes. Ideally, your property should be at a location that not only shows steady growth due to the passage of time, but also can be used for renting purposes. It could be either a condo, apartment, flat, or a house, but it should be at a location with the nearest access to hospitals, educational centers, and other community centers. It should also have good public transportation system so that you or tenant would have no issues in residing at that location.
5. Confirm the property location and move on – Once you are sure about the funds that you can borrow and the type of property you are interested in, you can finally move on to get the loan application approved from your loan mortgage company to get the most out of this loan. Get the property pest inspected and evaluated by property inspectors for any leakages or damages.
6. Protect your property using insurance – it is best to speak to insurance companies that are referenced by your bank to get your property insured. Future is always unpredictable and you need to keep your property to be covered in case anything wrong happens with it.
7. Get the deal finalized – Get to know the taxation laws of investment properties in Australia from the official website of Australian Taxation Office. Get the deal finalized with the home loan mortgage financing company and look for a bright future of investments in Australia.
Like any other business, property investment is a risk and should be done without emotions taking control over you. Make sure you have made well-informed decisions after studying the market thoroughly.