There are a lot of ways to invest in property, and deciding what the best strategy is for your lifestyle can be tricky; however, our team can guide you through the entire process. We will inform you of your borrowing capacity, allowing you to make an offer with confidence when you find the right property to add to your portfolio.
Before you get started, it’s crucial to have a plan in place and to have completed some basic research. By conducting some research, it will help you understand what your goal is, what the right loan option is and if the property is appealing for tenants and future buyers.
To help you with this research, we have compiled a list of investment strategies to help you get started.
1. Home Ownership
Home Ownership is by far the most common investment strategy Australians uptake. With its simplicity, a smaller amount of capital required and reduced risk compared to other strategies, it’s a great way to get your foot in the door. As a medical professional, you may be eligible for 100% lending among other benefits. Check out our Home Buying Guide for more information.
2. Buy and Hold
Buying and holding a property simply means you purchase a property, wait for the value to raise and then sell. This strategy is relatively popular, especially for those investors who plan to have the property tenanted.
3. Renovate to flip
Another effective strategy is to purchase a property, renovate it to add value and then sell it at a profit. It’s important to understand that this option will have additional costs that you will need to consider.
4. Developments
Purchase a large block of land and develop it into a block of units or townhouses. With this strategy, you have the option to sell the entire development after completion, sell off each unit/ townhouse individually or hold onto them and rent each premise out.
5. Commercial real estate
With commercial real estate, you will generally require a larger deposit than the standard residential property. If you’re unsure what deposit you require, simply get in touch with our team from Enrich Finance.
To choose the right investment strategy for your unique situation, make sure you organise a time to chat with a finance expert. It’s important to continually reassess your strategy every few years to ensure it’s delivering the outcomes you desire.
Tips for buying an investment property
Investing in property can be a great way to create wealth, but there are some tips you may want to consider before you start investing.
Firstly, it’s important to know your budget. As a starting point, use an online home loan calculator to understand your borrowing capacity or speak with a mortgage broker to figure out a more accurate borrowing capacity.
It might even help to obtain pre-approval, so you can shop for your new home with confidence, knowing exactly what you can afford.
Secondly, don’t underestimate your ongoing costs! It’s important that you include the costs of rates, insurances and general repairs when creating your budget. By doing this early on, it will avoid any unexpected budget blowouts.
It’s also important to be realistic about your investment goals. When choosing the suburb and the block, think about what you can do with it. For example, if you choose a steep block, it could be difficult to build on and there may be high excavation costs.
If you’re not sure how you can benefit from investing in property, simply reach out to our team of brokers. Enrich Finance will be able to guide you through the finance options, giving you a better understanding of how it can benefit you as an individual.
Ready to get started?
At Enrich Finance, we have a mission to find the right loan for your needs and to always have your best interests at heart. If you’d like to discover your borrowing capacity, simply call our team on 03 8375 9627 or 0402 182 855.