Whether you’re new to property investment or you’ve been involved in this lucrative asset-building option for years, researching the latest tips about getting the most for your money can help you maximize your investment returns.
Prepare for investment property ownership
The Australian market is full of potential and property investing is popular right now. However, the fact that there is money to be made doesn’t mean that you’re necessarily ready to invest. Careful consideration must first be conducted to ensure you’re in a stable financial position now and into the future.
Get your personal finances under control before you put money into an investment property. Paying down your debts is a must. You’re likely to be paying more in interest on your debts than you would be earning on an investment, so it just makes financial sense to get that taken care of first.
Paying down debt also improves your credit score, and you’ll need to have a good score to borrow money for investing. The higher your credit score, the lower the interest rate will be on your loan. You’ll end up with a higher rate of return.
Consider interest-only borrowing
There are advantages to opting for interest-only loans when you’re investing in real estate. You’ll be able to borrow more, so you could invest in multiple properties. Most lenders allow you to pay down the principal as you please, so opting for interest-only loans doesn’t lock you into a high principal that never gets paid down.
Increase property value
The market dictates how much you can make on your investment to a point. You retain some control, so you have to be proactive about making your property worth more. Renovations offer the perfect opportunity to increase the value of a property. If you don’t have a lot of money left over to invest in renovations, consider keeping it simple. Even improving the outdoor area or a fresh coat of paint will boost property value.
Get expert advice for the right investment from http://www.mortgagechoice.com.au/
This article was supplied courtesy of Mortgage Choice.