Do you need to save up a deposit or do you use the equity in your existing home? We help you understand the basics to assist you on your way to your first investment property.
1. Evaluate your current financial position
Once you’ve made the decision it can be hard to know where to start.
The first thing we want you to do is evaluate your current financial position. Write 2 lists… one for what you own (your assets), and one for what you owe (your liabilities). You also need to know what you currently earn. This information will be your guide to how much you have available to invest.
2. Contact a mortgage broker
Once you understand what’s going on with your finances its our time to shine!
Make an appointment to see a Rise High Mortgage Broker, you can contact us here! They can calculate your borrowing power and provide you with the best advice on how to finance your investment. This could mean you need to continue saving, reduce your existing debt, refinance or use equity to finance your investment property.
Depending on your existing equity you may be able to purchase an investment property without requiring any physical deposit. But, the lender may still require you to show some form of genuine savings.
3. Develop a plan
We know getting all this information can be equally exciting and stressful.
Developing a plan can help ease your mind about your continuing financial role in your investment. In the plan work out how much you are going to spend, the sort of property you want to purchase and where you’re looking to buy. This can all be done with the help of your mortgage broker!
Once you have your plan your mortgage broker can arrange pre-approval for your finances so you can shop with confidence.
Once you’ve done these 3 easy steps… Congratulations, you’re ready to start looking for your investment property.
Remember to stay focused on your plan, stick to your budget and don’t lose sight of the big picture, your first investment property!
If you would like a Rise High mortgage broker to contact you, leave your details below and we can help you start investing in property.