Investing in property is a big decision, with stress and excitement in equal measure. To help you make sure the process has more of the latter and less of the former, we’ve provided this handy checklist to follow on the way to achieving your investment property home loan. Read on for our tips on buying investment properties.

Decide on Your Objectives

Taking out an investment loan to buy a property requires very specific objectives. It is a very different process than that of first-time home buying, or purchasing property for another reason. So, you’ll need to have your objectives outlined right at the beginning. Are you planning to purchase a home cheaply, do it up, and sell at a profit in the short to medium term? Are you planning to purchase an investment property in a growing market so you can watch the value appreciate? Do you want to rent the property as a holiday home, or as a residence for families? Decide all of this before you continue.

1. Set Your Budget

You will need to know how much you want to spend as you purchase your investment property. It’s also important to factor in ongoing expenses such as loan interest, renovation costs, and taxes. Assess your income and decide how much money you have to work with. Use these cost and income calculations to build your budget.

2. Get Your Finances in Order

How will you finance the property purchase? Prepare your bank accounts so that you have access to the money you need for the deposit, and set a monthly budget so that you can afford the home loan payments when they are due. Speak to a mortgage advisor to find out how much you can borrow and to learn more about the loan-to-value (LTV) ratio you can qualify for.

3. Get to Know the Market

Where do you want to invest in property? Refer back to your objectives as you answer this question. You may want to invest in a location where property values are rising rapidly, or you may prefer to look for an area with a strong rental market. Make sure you stick to your investment objectives as you analyse the market.

4. Find Ideal Property Candidates

As you examine the property market in your chosen area, it won’t take long before you start to identify ideal candidates for your investment purchase. Draw up a shortlist of properties that meet your criteria. In some markets, you may find a large number of properties that align with your goals, so try to keep this list short and manageable. Don’t include any more than 10 possible properties to make comparisons easy.

Property Investment Checklist | Sydney Brokers5. Gain Expert Insight

It may be helpful to speak to friends or family members who have already bought investment properties, particularly those in the area you want to invest in. However, it is recommended to speak to a buyer’s agent to get professional-level, up-to-the-minute insight.

6. Inspect the Property Completely

You’ll need to visit the property and inspect it thoroughly before you make your decision. Check out every aspect of the property, looking for mould or damp, malfunctioning water or electricity systems, damage to walls or doorframes, or anything that you may have to put right in the future. Remember, this is your investment, and you need to make it work for you — inspect the property several times before you make a move to buy.

7. Open Up a Dialogue on the Price

With a buyer’s agent on your side, you may be able to negotiate the price of the investment property. If you found any damage or other issues during your inspection, you may be able to bring this to the attention of the seller, and they may reduce the price as a result. Professional negotiation is a standard part of property purchasing.

8. Utilise Expert Brokerage Services

With your property selection finalised, you need to make sure you have the proper mortgage or property loan for your circumstances. This is where an expert mortgage broker will be able to help you. This broker will deliver you a number of different options that meet your situation, and will guide you through the process.

Reach Out to the Experts at Sydney Brokers

Here at Sydney Brokers, we help clients to find the investment property loans they need to pursue their chosen strategy. Reach out to our team today on (02) 9160 7654 or to learn more or to get started.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.