No matter how old you are, the excitement and anticipation that comes with purchasing your very first investment property are always going to be justified.
From the moment you realise that you have enough to convert the costs to the time you sign your name on the transfer papers, acquiring your first real estate investment will make for an unforgettable experience. Considering that not too many Australians take the same route that you’re on now, you can consider yourself as one of the more exclusive investors in the Land Down Under.
Whether you’re looking to grow your financial empire or reinforce your bank account in the long run, purchasing an investment property to generate passive income from is a great way to secure your financial future. However, the problem with the whole experience (especially for first-timers) is that the purchase process can prove to be quite complicated if you’re diving in without much knowledge.
Various effective tips for first-time investment property buyers
Although it may understandably seem like an intimidating process at first, purchasing your first investment property can be surprisingly easy if you act with the right tips and tricks in mind. If you want to ensure that your entire purchase experience pans out in the best way possible, here are two essential tips to smoothen out the process and make your preparation impactful:
Tip #1: Foster good saving habits
Compared to other investments that you can get into, property investments provide a much bigger yield that is proportional to their costs, meaning that you can get big money and spend it all easily.
Whether you’re paying for the entire amount in one go or enlist the help of FinanceCorp’s experienced mortgage professionals, it pays to foster good saving habits before all else. Once you know how to save properly and have built a significant level of self-control, then you can go ahead and get your investment property without worries!
Tip #2: Know your borrowing capacity and act on it
One of the most significant mistakes that many first-time Australian real estate investors make when buying passive income is that they aren’t aware of their borrowing capacity.
When you fail to understand your borrowing capacity before purchasing a second home, you put yourself at risk of financial turmoil because of how doing so will blind you to vital aspects that will best inform your decisions. However, once you start knowing your borrowing capacity in greater depth, you can delve deeper into matters with a more suitable and effective approach well enough to:
- Build up an adequate deposit that’s best-suited for your current financial status
- Choose the best loan option that meets your needs and preferences
- Go about a smoother loan application and pre-approval processes wherein you fit all the requirements with ease
The experience of buying a piece of real estate to invest in easily makes for an experience that will have you amazed, excited, and confused at the same time, especially when it comes to the last feeling. With this guide’s help and the two tips mentioned above, you won’t need to worry about making any wrong moves or inadvertently making your acquisition process harder!
Are you looking to take out a home loan in Perth but need the help of a financial advisor to make sure that you’re making the right decisions? Our finance managers are all fully qualified, trained and experienced mortgage professionals who live and breathe finance. Get in touch with us today to see how we can help!