Re-think your position
A lot of people don’t think that property investment is an option for them. They look at the cost of a property and a deposit and think there is no way they could find a path from their current circumstances to the destination of owning an investment property. But while raising the funds for your first investment property is a challenge, it can be a lot easier than people first imagine. It’s all about re-thinking your position and planning accordingly.
Budgeting and saving
The first thing to do determine your financial goals and create a budget and savings plan to do it. Have you really considered how much you will need for a deposit? It’s worth checking out some areas where you might like to invest – for this, its good to think outside of the box and not just down your own street. Read our articles about high growth areas, and you might find that properties are a lot more affordable than you think. You might also want to browse some home loan rates and deposit requirements too, as some lenders only require 10% deposits for a property. Then, you can get to work creating a budget and saving for your financial goal.
To help with your budgeting goals, you might want to look at maximising your saving efforts by refinancing any current home loans that you have. Refinancing is when a homeowner pays off their existing home loan and replaces it for another. There are many positives to refinancing as a financial planning strategy, including lower interest rates, equity release options, and shorter repayment terms. Refinancing could help you to secure a lower interest rate, shorten your home loan term, or convert your loan type to give you some extra disposable income each month.
Where budgeting, saving, or refinancing can help you raise funds for a deposit, you will likely need an investment loan in order to finance the remainder of your property purchase. An investment home loan is set up slightly differently from residential home loans – particularly around deposits, interest rates, and fees. It’s important to learn about these differences so you can shop around for the best deal for you. Generally, investment home loans come with slightly higher interest rates and costs, but they also come with an interest-only option, so the repayments you make will actually be less than your residential home loan.
The key to getting your foot on the investment property ladder is getting expert support. With Reventon, you can receive a free consultation and personalised advice from one of our experts to forge your path to property ownership. Just as many people don’t believe that property investment is for them, they also don’t realise how accessible and informative expert support can be. For more information, learn more about our free advice sessions or book your consultation today.