Questions to ask before investing in property
Questions to ask before investing in property
Why would you like to invest?
An investment property can deliver a lot of possible types of return:
Rental income
Rental income can be a regular income and that is because a tenant signs a lease committing to pay rent. You can get an idea of the likely rental income by speaking with agents or look at what similar properties in the area are being rented for.
Long term growth
Your property growing long term is a fantastic way to gain a return however this can be unpredictable. Many people decide to be guided by past returns for the future when deciding to invest.
Building a solid foundation
You can use your investment to build a solid financial foundation for your family. You can pass it on through generation to generation! As we know it is getting harder to own your own home so giving your children a step up and helping them in owning a property in the future.
How much deposit do you have?
Buying property is a major purchase, and you will generally need a deposit of about 10% though this could mean paying lenders mortgage insurance.
If you are already a home owner and you may be able to use your homes equity. We can let you know if this is an option for you.
Are you OK with taking on an investment loan?
One of the ways you can make sure you can take on an investment loan is you need to be sure you can manage the repayments on your loan, at Credit Star we can give you helpful and useful home loan advice.
You will still need sufficient money to pay the upfront costs of buying property such as:
· Stamp duty
· Legal fees
· Pre-purchase inspections.
At Credit Star we can structure your investment home loan in a way that the above costs are funded by the equity, and you may not have to pay for these out of your own savings.
Thinking to invest?
You can start by calling
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