Property Investing Advice - Assessing Property Value
Looking for advice on buying an investment property? Resi can help you with information on Rental return and Capital Growth:
Rental return – how much rent can you reasonably expect to obtain from the property investment? Are you able to cover the difference between the rent and your mortgage and expenses? Is it enough for your investment strategy?
Potential capital growth – what is the expected increase in value of the house? Will this property enjoy high demand in the future? Please note that past high increases are no guarantee of continued high growth.
Overall return on property investment – things to think about
a) Rental Return vs Capital Gains. In general, properties that attract a higher rental return usually have lower capital growth. With marginal tax rates falling, it's probably wise to have a combination of good return and capital growth.
b) Interest rates can also impact the return significantly especially where extreme fluctuations occur - always allow a buffer for interest rate increases, or fix the rate to be ensured of some certainty.
c) Always keep the long term view in mind – property investment incurs many costs to buy and sell and as such, impacts overall profit especially in the short term.
Contact your nearest Resi branch today or find the most suitable home loan for your property investment needs.
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