It’s a fact that Australians have embraced property investment in a greater capacity than any other nation. Residential property is an asset class that we know and understand; we have grown up with it, we study it like a form guide on Saturdays, and follow the pricing trends looking for opportunity.

 

So are we on the brink of a buyers market? Many analysts say yes, which is great news for the many seasoned and first time buyers ready and waiting for a good buy.

 

For first time investors however, the decision to purchase an investment property can be a challenge, but certainly worth the rewards if you make a few prudent choices along the way. According to one of Australia’s leading non-bank lenders, Resi Mortgage Corporation, investors need to understand the entire process in order to be comfortable with their choice. 

 

Understanding the property market, pricing trends, and identifying property hotspots can lead to a sensible and practical buying decision. It all begins with research, and there are many good quality websites that can provide you with valuable information to help you along the way. Getting the local take on the market is also useful, talking to real estate agents and residents can open up a layer of information you may not find on the web or in the newspapers.

 

First time investors should be careful when choosing their property, and take a good look at the bigger picture. It’s important to remember that the property is being purchased as an investment and not for the buyer to live in. Many people make property purchases based on the emotional attraction. For investors, it’s a different approach. There needs to be a thorough examination of the local infrastructure, investigation into any planned changes to roads or services and a good sense of potential capital growth.   

 

Part of your decision to invest should also include your borrowing strategy, taking into consideration how long you want to keep the property in your portfolio. Property is a long term investment, and anyone after a more immediate dividend should probably choose an alternative asset class. 

 

Setting up your loan in a manageable and tax effective vehicle is most important. First time buyers will need to rely on related experts, such as lenders, solicitors and accountants to steer them in the right direction. Your lending manager should be an experienced individual that can suggest and recommend strategies to help you navigate your way through the initial stages of your purchase. Beyond this they should be able to propose a plan that will help you realize you long term financial goals.

 

In addition to residential property, many investors are looking to diversify their portfolios with the inclusion of a commercial property. In recent times we have seen a clear increase in rental returns on commercial property, and with lending criteria being more relaxed, this type of purchase in now within reach for most investors.

The great Australian dream of property ownership and investment is alive and well, and in this market – opportunity could be just around the corner. Any borrowers who need information on investing or home loans can speak to one of our lending & mortgage specialists. Click here to find the closest branch near you.