buy an Investment property
set yourself up for the future
Investing in property is considered a realiable and strategic approach, often times avoiding volatile fluctuating markets.
An ongoing housing shortage in Australia and a tax system that allows for tax deduction benefits gives Australians who invest in property a strong push towards financial freedom.
knowing which lender is rite for you ensures your getting the most out of your investment leading to confidence in your decisioning. And that’s where we come in. With over 40 lenders at our disposal we aim to offer you the best solution for a brighter future.
What to consider
Property Type
When investing you will need to consider if you want to buy a unit or a house. Houses typically increase in value more over time, whereas a unit may be easier to maintain and find a tenant for.
It is important to think about what you’re goals are when deciding on the property type to buy
Location
The location of a property can vastly improve the appeal to renters in order to keep it occupied and achieve higher rental income.
Generally you will want to be near schools, major shopping centers and public transport. We can also generate property reports for you to see how other properties perform in the area
managing your property
Many investors will use a property manager to communicate with tenants throughout their stay and organize the advertising of the rental.
They also conduct inspections, collect rent, organize repairs and more.
If you wish to self manage a property you will need to learn tenancy laws in order to stay compliant.
Coverage
Landlord insurance is highly recommended to cover you for damage and unpaid rent.
If the building is a strata title it is also worth looking at the body corporate building insurance to ensure sufficient coverage
Appreciation and depreciation
Your accountant will keep track of the appreciation or depreciation of the property.
Depending on your living situation and the nature of your living situation with the property, you may need to pay capital gains tax on the sale of the purchase.
It is important to speak to your accountant to stay up to date on how this is calculated.
interest deductions
In most instances you will be able to claim the interest and expenses of your investment loan as a tax deduction due to it being an investment expense. Also keep in mind that you will need to also consider the income generated from the property as well.
It is always best to speak with you’re accountant about your tax situation.
The process
1. introduction
Speak with one of our brokers to discuss your goals and get an idea of how much you can borrow. We exchange documentation and collect your information for accurate results.
2. Choose a lender
After we recommend you 3 lenders for your situation we can submit your loan for approval. Each lenders will have their own criteria for the type of customer they prefer. We also discuss with them a discount on your interest rate.
3. Pre-approval
Once pre-approved you can now start looking at houses. You can go to home opens or chat with sellers to negotiate a price and sign a contract. Make sure to consider the type and location of property your wanting to buy.
4. Settlement
With your signed contract we can now sign your loan documents and the bank will settle the funds with the seller. This is done through the use of a settlement agent who takes care of the process.
5. Managing your property
It’s time to think about how you would like to manage your property, either through an agent or by yourself. At this stage you will be looking for a tenant to occupy your house.