6 tips for successful property investment

Intellichoice suggests the following 6 tips for those looking to invest their hard earned money in a piece of Australia.

1. Create a long-term property portfolio plan

Realise that investing in property is usually a long-term strategy. Always ensure you are comfortable with the advantages and disadvantages associated with a particular investment asset. Consider your goals and all possible outcomes.

2. Consider all costs & positive vs. negative gearing

Keep in mind that the interest and related expenses you incur (such as repairs and maintenance) are tax deductible. If your home loan repayments, fees and other costs exceed your rental income, the net loss can be offset against other income you derive, meaning you will be able to reduce the amount of tax payable on your other income. This is called negative gearing. Or, you may consider positive gearing, where the annual rental income received from the property covers or is higher than the annual home loan repayments and costs.

3. Think about buying with friends, family or work colleagues

More and more Australians are taking advantage of pooling their resources with people they know in order to get into the property market or increase their property market 'wealth'. With a myriad of mortgage lenders and home loan options now in the marketplace, all it takes for applicants to have their home loan application approved is the ability to meet home loan repayment requirements. Speak to a mortgage broker about researching and comparing home loans for you. With access to over 35 mortgage lenders and 800 home loan products, how do you know you're getting the best home loan for you? Our mortgage broker will do all the legwork for you and find a home loan that suits your needs.

4. Choose a home loan tailored to your current needs

Depending on your monetary situation and current investment portfolio, there are a range of property home loan products for you to consider. Apply for a home loan that suits your current needs and lifestyle because you can always refinance later. A mortgage broker will be able to assist you with finding a home loan that suits your needs from their panel of approved mortgage lenders.

5. Use a buyers agent/property finder

Seek advice about the type of investment property that will maximise your investment. Buyers' agents know the market better than most and are a valuable resource to use for advice or for negotiating with property sellers and/or their agents.

6. Visit a financial advisor and/or accountant

You need to discuss your full monetary situation with someone who is very experienced with clients who have a range of investment assets because you need to make sure that your financial situation is improved by an investment property and that you can afford repayments without stretching the budget uncomfortably. To learn more about your borrowing power and loan repayments calculator, use the online finance calculators.

To find out more about what home loan suits your needs, arrange an appointment with your local Intellichoice mortgage broker today by calling 1300 55 10 45.