Property Investment Tips: Signs you might be ready to invest

By the resi financial blog team, 05 December 2014

Property Investment Tips: Signs you might be ready to invest

Home ownership is something most Aussies aspire to, but belonging to the investment class seems too far off for most people. You might be surprised at just how ready you are to start on the road to your own property portfolio.

I'm still busy paying off my own home

Great! Too many people wait to pay off their own home loan before looking at a new mortgage for investment. If you've been living in a home you've purchased for a few years now, you've probably been watching house prices around you rise, wondering what the implications are for your home.

Most likely, your home will have appreciated in value. Combined with the fact that you've paid off a portion, you've built up some equity in your home. You can refinance to the current value of your home and use this equity as a deposit for an investment property. Just make sure you will still be able to cover your repayments and that your rental will net enough yield to make it worthwhile.

My income is not fixed

Contractors, real estate agents, entrepreneurs, amongst others, all have a fluctuating income. You may have tried to get another finance product in this position and found it difficult because you don't have a steady income.

However, if you are confident that you can be disciplined with your money in times of plenty and in times of drought, then you could be ready for a lo doc home loan. Specifically formulated for the self-employed who may not have as much documentation as a salaried employee, this could be the product that helps you to get a passive rental income to pad your nest egg.

Whatever your situation, when it comes to home loans for investing, you'll need some good pointers on the right product for your specific situation. Talk to a resi loan specialist to find out more about our great range of products.

Categories: Home Loans, Property Investment