In the past 2 months, almost 63% of our client enquiries are 1st-time property investors. That said, we are putting up an article to provide insight into the most common response that we get when asked what’s stopping them: Lack of Knowledge and Funding. Read on as this could be the key for you to start your own Monopoly :)
Research and planning can play a big part in the success of your property investment. But it is always good to know that Positive Income Properties deals with all the drama involved. For some who’s doing their research, here are some tips to help you get the ball rolling.
Set your goals: The why’s
It’s a good idea to consider the realities of the property investment alongside its potential benefits. Think about why you’re investing in the first place, and whether it fits with your particular set of circumstances – this will also help to guide your next steps.
For example, you’ll need to make sure you can cover your loan repayments without greatly affecting your lifestyle, and consider if you’re comfortable with the risks involved, like a possible drop in market value or interest rates increasing significantly.
Do your research and get experts to work with you
Doing your research first will help you clarify your options. And there’s a lot to consider: from whether you’re looking for an apartment or a house, to suitable suburbs and how much you can afford to borrow with an investment loan.
It’s also a good idea to decide whether you’re buying to make an income now, or as a longer-term investment. Then research the property’s potential for capital growth, rental income and ongoing costs.
At Positive Income Properties, you can discuss with us what you are after and we can do the sourcing for you.
Work out your finances
Lenders will generally ask for a minimum deposit of between 10% and 20%. You’ll also need enough upfront cash for things such as stamp duty, legal and conveyancing fees, insurances, maintenance, and interest on borrowings.
Also, consider how the cost of your borrowings could impact your investment. Many Australians have variable interest rate loans, which means their borrowing costs can fluctuate. It is worth considering how changing interest rates could impact your investment, and looking at the options for fixed and split-interest rate loans.
Positive Income Properties also assists our clients with getting their finance arranged through our partners.
Secure a Preapproval
Find out if you are preapproved to secure a home loan. This is your 1st step in getting finance for your property. Knowing where you stand will prepare you in the coming months for what you lack and you can work through it from there.
Talk to us so we can assist you in securing a preapproval.
A rental guarantee gives investors security against vacant property or tenants who have stopped paying rent altogether. It directly protects the landlord, by supplying continual cash flow even when there is no tenant at all. This is the peace of mind that all property investors need to have. (source: PIS)
Positive Income Properties comes with a 1-3 year rental guarantee on all our properties, if you are just starting out with rental property, it is a good option to start with.
Trending property types to invest in with higher returns this 2021
If you are just starting and doing your research, it would be a great idea to learn about the different property trend in the market to take full advantage of value and return in the long term.
Keep in mind that the type of property portfolio you’ll have is basically the type of property investor you are.
Below are currently 2 trending property types this 2021.
Co-living – The next generation in residential investment property
High income meets capital growth, the ultimate Reward.
In a world-first, the unique design of this co-living model will offer investors the opportunity to invest in purpose-built, designer homes that provide superior yields and capital growth potential.
We achieve this by providing a concierge service to tenants while improving rental affordability and reducing social isolation across Australia.
A typical standard house has 3 Bedrooms with Ensuite Baths, 2 Car garage, shared kitchen, living room, and a media room.
All our units come FULLY FURNISHED.
8 to 10% Rental Return
Low-interest rates will allow for a high positive cash flow
3 to 4 Income Streams
Get 3 separate incomes from 3 different tenants in 1 home - Also applicable with Dual Key homes
In-house property management to handle your rental
2 Types of Coliving: Seniors and Standard. Contact us for more information.
Luxury Apartments - Rightsizing boom.
From our recent blog, we highlighted the downsizing trend: Owning an expansive house with a white picket fence and garden with stretching green lawns used to be the Australian dream retirees and families want to chase.
Instead, experts have revealed homeowners are rightsizing, or downsizing, for the perfect lifestyle. Forget about the great Australian dream. People are moving towards luxury living that meets all their lifestyle requirements which makes luxury apartments a great flexible high-value property investment to add to your portfolio.
Securing a tenant is a lot easier for these types of properties. Rent can be higher considering the features of the property and its proximity to everything.
At the end of the day, after all those thinking and research, you'll need a reliable and credible partner to work out the best option and property for you.
Check out all the range of property types we offer across Australia. From a house and land package to a dual key, duplex, luxury apartment, and the newest co-living investment properties - we can only promise great investment yields and quality build.