Before you even select an investment property, start with understanding your finance needs.
- How much you can borrow?
- What will the repayments on the loan be?
- What are your expected rental returns?
- What will the total holding cost of the property be including rates and maintenance
- What will be the best structure of the loans to maximise tax deductions and to allow asset protection? Will it be individually? In a trust?
This will be a major purchase in your investing portfolio. It deserves to be done right the first time and investing a small amount of money to ensure that you are getting professional reliable advice will prove money well spent.
When you look to understand how much you can borrow, don’t just rely on one of the many calculators you can find on the internet. We purposely dont have these calculators on our site, because they can be misleading – not because they are inaccurate, but because they may not tell you the full story – that is – you may be able to borrow more and pay less!
Once you have a clear understanding of what you can borrow and what it will cost you, its time to start the selection process of your new investment property.