PURCHASE AN INVESTMENT PROPERTY.

Investing in property has always been seen as a great way to increase your wealth and help you become more financially secure. Whilst it typically for those with a foot on the property ladder, it is also possible to become a property investor without owning another property first. However, there are some important factors that need to be considered beforehand:

You’ll be paying more.

Changes to lending policies in 2015 has meant that the interest rates for looking to get an investment loan are typically higher. This used as a way to discourage investors from saturating the market and allow first home buyers to get a property. That being said, there are a number of lenders who offer very competitive interest rates which allows investment in property remain affordable.

It’s usually a long term investment. 

Unlike other investment strategies (e.g. shares), investing in property tends to require more time for it to gain significant returns. This can be due to fluctuating market conditions, property location or changing consumer needs.

Leverage existing property.

Most investors tend to leverage the equity in existing properties as a way of raising the capital needed to purchase the investment property. It’s important to consider how this will affect your financial position, should market conditions unexpectedly change.

Chat to one of our team members today to work out your ideal strategy for investing in property.