Thank you for taking the time to read about the process of buying your investment property and obtaining finance. This guide is designed to help you through the process to ensure nothing is missed and that many of your questions are answered.
Property has been considered a popular path to wealth for Australians for many years. Buying their own home is often the first significant investment most people make. Purchasing another property may well be the second – even before shares and other assets. However your first investment in property need not be your home.
Buying a rental property can be a good way to gain capital growth that can be used later to help buy your own home. Sensible investments in property have many attractions. Property can be less volatile than shares and it tends to be regarded as a safe haven when other assets are declining in value.
Property has the potential to generate capital growth (an increase in the value of your asset) as well as rental income. There are also tax advantages associated with negative gearing.
Why invest in property? Because you want to avoid dependency on the government pension at retirement, or the false belief that compulsory superannuation will be enough to support you in your retirement.
Buying real estate, whether you are buying the family home or an investment, is one of life’s most important financial decisions. However, when buying an investment property, it is wise to remember that you are making a business decision. You are not buying from the heart, but from the head. You are buying the property because you expect it to appreciate in value and give you a financial return.
When investing, it is important to assess your current financial position. What are your cash reserves and what equity do you have in your present home? Look at your long term objectives. For example, will the property be part of your retirement financial plan?
Potential changes to your current situation should also be factored in, such as the birth of a child, the loss of one income or supporting parents in their later years. It is wise to seek advice from an investment adviser or qualified financial planner to help determine your financial goals and strategies.
Please call the office for more information or clarification about your own circumstances and your future property investment potential.
We look forward to helping you purchase your first and hopefully many future investment properties.