Buying an investment property requires the understanding of clear and specific goals. It’s important to know whether you’re buying for a short term or long term gain, if you intend to renovate and you rely on rental income how will you manage? Should the property be negatively geared, positively geared? Will you end up moving into the property yourself or are you buying a home that you can escape to, fully furnished and being let as a holiday home while you’re not there? These matters need to be considered, researched and you probably need to run your ideas by your accountant.
Once you have clearly identified what is motivating you, and you’ve done the sums, you’re aware of costs involved, repayments required and commitment level, it may very well be time to shop. To be absolutely certain you’re able to make offers in the appropriate price range you should also get to know the area in which you’re buying and apply for a pre-approved loan.
The quality of a pre-approved loan sometimes leaves much to be desired.
At best the pre-approval means your application has been assessed thoroughly by your lender and the only outstanding condition is that you find a property they will except as security.
At worst, your application may simply have been run through an electronic calculator with the lender refusing to even look at your file until the property is found.
Considering the variations between lender assessments, the team at Mortgage Navigators is experienced and can be sure that your pre-approved loan is as genuine as possible. If you’re bidding at auction this is even more critical!
Clearly understanding the marketplace in which you’re buying is an important factor when purchasing in an area that you may not be familiar with. RP Data provides information regarding actual sale prices. Real estate agents and the land titles office have access to this online service. They update information regularly and since Mortgage Navigators subscribe we also have access to this valuable information. For a free property report or information on the correct financial structure for your situation, simply get in touch.