As the Reserve Bank of Australia has publicly stated it has no intentions to move official interest rates at this moment, it came as no surprise when they announced the official interest rate remains at a record low of 0.10% pa.
Is it time to consider an investment property?
With the property market in the headlines, many people are considering their next move. Have you considered an investment property? With record-low interest rates, it’s worth looking into.
Your starting point is checking your credit rating. If you pay your credit cards on time, you should have a good rating. Next, have a look at your mortgage and the equity that you have in your house. This is important and should also give you an idea of the price range of your potential investment.
Assuming everything is in place, the next step is finding your investment. Do your homework on this – the ideal investment property is probably in another town or even in another state.
Look at areas that are up and coming – this could be regional areas or on the outskirts of major cities. Ensure the area has the proper infrastructure – public transport, schools, shops and other facilities.
Also, do some groundwork on the type of people who may want to rent your investment property. What is the employment situation in the district? Are there industrial parks, hospitals, shops, factories or business areas nearby? The more information you have, the easier it will be to make a decision.
Finally, ensure you have financial approval so you’re ready to go. Here, speaking to an experienced mortgage broker is highly recommended. If you want any help, our experience in securing the right mortgage can make the process as stress-free as possible.
Even if you are only considering an investment property, give us a call, and we can take you through what to expect.