Consider Becoming a Property Investor

Written by admin on October 27th, 2011

Australia has one of the strongest and most stable housing markets than any other country right now.  Amidst a global financial crisis and an unstable economy, the housing market in Australia still appears to be going strong.  Statistics show that the Australian house market has been increasing steadily over the past 40 years. Not only is the demand increasing but the property value is increasing which provides more incentive to own and buy property than ever before.

The Benefits of Investing

While some people dream of owning their own home, others dream of owning many homes and reaping the benefits of both owning and investing. There are a variety of home loans available for people with various different credit backgrounds and financial circumstances. The dream of being a homeowner can become a reality for people who never thought they could afford it.

It is because the market is so stable that it is less difficult than it ever has been to qualify for a home loan.

 Investment property ownership is also becoming more and more popular in Australia because the housing market continues to boom. The criterion for becoming an investor has become less stringent because of the growing demand for affordable housing. There are many benefits to purchasing and owning multiple properties; one being the available tax deductions for property investors.  The benefits to being a property investor include:
Interest deductions
Tax deductions
Renovation tax deductions
The high demand for rental property
Market consistency
Other money saving options

Do Your Homework

It always pays to do your research before entering into any financial obligation.  While investing in property can be a sound financial move it is best to ensure that you are well informed and prepared to pay the least and make the most from your investment.

Realize investing is a long term commitment.  Most investors will be borrowing a significant amount of money from a lender.  You may have to tap into your equity from your own home or another investment to obtain a loan.  Usually the amount borrowed may be much higher for an investment property than it would be if you were purchasing a home in which to live.  You will have to be comfortable with the amount you are borrowing and be able to have some cushion in the event that you come upon hard times.
Be realistic. The housing market although it is stable currently has highs and lows.  Investing can be a lucrative experience but there will also be hard times, vacant properties, tenants that don’t pay and repairs that need to happen on your properties.  Make sure that you are financially sound enough to weather the down times.  Remember that you will have to spend money to make money.
Be informed about the market.  You will want to find a way to be well informed about the investment market, keep on top of property values, market and investment trends.  It is advisable to take a class, do on line research or find a mentor who can help you understand the market and stay ahead of it and get the most from your investments.

Seek Assistance

There are home loans designed specifically for those that are looking to invest in properties.  Just as there are a variety of home loans available to meet the various needs of borrowers looking to purchase a home, the same is true for investors looking for investment properties.  The best place to start is to research a credible property investment mortgage broker to help get the process rolling.  Someone who specializes in investment loans can assist you with the following:

Identifying property that is worth an investment
Researching up to date market trends and information
Identifying potential investment loan options
Deciding to invest with a banker or non-bank home loan
Negotiating interest rates
Identifying tax and interest deductions
Purchasing and closing on your property
Providing sound advice

The potential to be a homeowner in Australia has never been more promising and possible.  Many Australians are looking to investing as a way to create wealth, secure their future and get ahead financially.  The opportunity to invest in real estate has never been a safer risk that it is in today’s market.  Financial analysts would argue that investing in real estate today offers more potential and less risk than investing in stocks, shares and bonds.

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