If you’re considering investing in a property, here are a few factors that you should bear in mind.
When constructing your investment plan, be sure to factor in the acquisition of a profitable investment property that suits both your goals and risk tolerance.
Once you identify an attractive prospect, calculate whether or not it will generate sufficient income after expenses – and if there is any shortfall, determine if you are able to bridge this gap indefinitely.
On top of that, make provisions for times when no one may occupy the space temporarily. Finally, conduct market research before settling on a purchase; the type and location of where you buy could spell out potential returns over time.
Where to buy
- Spending ample time researching familiar areas is highly advised.
- High-growth zones with appealing rental yields and low vacancy rates should be identified as potential locations for investment.
- Additionally, it’s important to discover any planned alterations in the suburb that could possibly alter future real estate prices.
What to buy
- When searching for a property, be sure to pay attention to desirable features such as an additional bathroom, parking area and proximity to schools, stores and transportation.
- Additionally, determine the estimated maintenance costs based on its type and age along with any other special characteristics.
How to buy
- Heed caution when it comes to obtaining property investment advice from a conglomerate of service providers.
- You must be aware that developers, accountants, attorneys and loan brokers may suggest each other’s services.
Pros and cons of investing in property
Many view property investment as a safer option compared to other forms of investments. But even though it appears more straightforward, there are still risks that you must be aware of before investing in property. Here’s an overview of the considerations for successful and secure property investment.
Pros
- Enhanced stability – Unlike other investments, property is generally less volatile and can be a reliable option for those seeking stability.
- Generating revenue – Enjoy a steady stream of income when your property is leased to tenants.
- Long-term Financial Appreciation – When you eventually put your property up for sale, a rise in its value can result in an advantageous capital gain.
- Tax deductions – You can offset the majority of your property costs against rental income, including interest rates on any loan needed to purchase the real estate.
- Tangible asset – By investing in this tangible item, you’re able to see the impact of your decision.
- Easy to learn, no expertise necessary –Contrary to the majority of intricate investments, there is no requirement for any special expertise when investing in property. With some instruction and resources, anyone can easily become a shrewd real estate investor.
Cons
- Budget–Although rental income may appear to be a dependable source of revenue, it may not necessarily cover all your mortgage payments and related expenses.
- Interest rates –When interest rates go up, the amount you have to pay back will increase while your disposable income dwindles.
- Vacancy –As a landlord, there may be instances when you must pay for expenses out of pocket in the absence of an occupant.
- Unbreakable. – When you require quick access to capital, selling off a bedroom is not an option.
- Decline in worth –If the property value drops, you may find yourself in a situation where you owe more money than your home is worth.
- Overwhelming upfront and exit expenses – Expenses such as stamp duty, legal costs and realtor commissions can add up quickly.
Clients Testimonials
What our Clients are saying…
Jose Martins
Thank you for the courteous, efficient and professional service and assistance that you have provided. The process went very well. Rahi did a great job, including working on weekends to meet the required timelines. Will definitely recommend them.
BIGGIEX 75
Highly recommended.
Thanks to Low Rate Home Loan Pakenham and specially to our broker Fareen/Broker who assisted us to refinance our existing property and investment property. Fareen was very profession, friendly and he answered to all our calls on time. Also he went above and beyond to make sure we are fully happy.
We'll definitely refer family and friends.
Cheers team.
David Martingale
Thank you Rahi, for your outstanding service. You have made refinancing our home loan very easy. We are very happy with the whole process. I highly recommend your service to all my friends and family
Ukuma Huni
They’re very trustworthy honesty helpful and quick to respond on everything I would like to recommend that they’re the best ,Low Rate Home Loan-Mortgage Broker in Australia.
Anupriya Balaji Vaidyanathan
Thank you to Shoaib, Low Rate Home Loan for making everything appear to be easy. Thank you for being so responsive and hardworking!
I would highly recommend this service! 😊
Balaji Vaidyanathan
We had a great experience with Low Rate Home Loan - Mortgage Broker Pakenham. It was our first home and Shoaib Afzali was really helpful through the process and made it look very easy. He was extremely responsive and made the complicated settlement look really easy. He worked really hard and was very dedicated through their services..I would give Shoaib Afzali a 7 star for his outstanding service...
Rubina Nishat
I am very satisfied, great help.
Siawash thank you for helping us with our home loan. You was very friendly, patient, always helped me with all my questions, very responsive.
You are going a great job. Keep going bro. Good luck and Thanks once again.
creswell narcis
Thank you Rahi for your support, true to you word you called me and updated every time you said. Very hard working knowledgeable and given me good advice.
Adelina Cota
Thanks to Fareen from Low Rate Home Loan Pakenham for refinancing my property. He kept me in the process from beginning to the completion of the process. He is very professional, transparent and honest. He got me cash back and much better rates.
Outstanding service I would highly recommend him and his team.
Thank you team.
dawood mir
Thank you Siawash for helping us refinance our home loan.
You have been a great help.
Thank you for providing excellent service from day one.
You were very friendly, courteous and patient throughout the entire process.
You were very quick to respond to all my queries as well.
Highly recommended.
Good luck to you and your company.
May you prosper more.
5 stars from me.
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