6 Steps to Becoming A Property Investor

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article.

A house or a unit?

Depending on your budget, you might decide to buy a house or a unit as an investment property. The big plus for houses is that they have historically gained in value more than units. That’s because it is the land that rises in value rather than the structure on it. The big plus for units is that the rental return, or rental yield, is generally greater than that on houses and they cost a lot less.

Financing the purchase

Real estate is an expensive investment and entry and exit costs are high. You also need to add legal costs such as conveyancing and building, strata and pest inspection costs, which alone can add up to a few thousand dollars.

You may need to borrow a substantial sum, especially if you have your sights set on a house. The type of loan you need will depend on the size of the mortgage and your own needs. Some investors like interest only (IO) loans or lines of credit, but a principal and interest loan will help you build your own equity in the property more quickly than an IO loan or a line of credit.

Do you need more detail on this subject? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts at [email protected]; or call me on (0295) 686 266.

Thanks,

Alex