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Rules of Investment

When it comes to property investing, you have a few strategies to choose from… but do you know the rules of investment?
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Rules of Investment

When it comes to property investing, you have a few strategies to choose from… but do you know the rules of investment?
Share this article with friends and family:
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Keep reading

Well… we’ll be honest, they’re not so much rules as guidelines. However you look at it this is what we want you to know before you start your property investment journey.

Rule #1

The first “rule” we want you to know relates to your finances. One of the first things you want to do when you’re ready to invest is talk to your mortgage broker about securing finance. Speaking to your broker will not only allow to get an idea of what you can afford, but where there are savings to be made (often these can come in the form of existing loan reviews, refinancing or debt consolidation) and how to manage your finances post purchase. We want to make sure that you can afford your repayments, come what may!

Rule #2

There are risking involved with any purchase. But the purchase of a property come with more than most. If you’re looking to purchase an investment property it’s important you manage those risks well.

A common mistake is relying on on rental returns as a guaranteed income in order to meet loan repayments. This can be a risky strategy that you may come to regret. There are times where your property may be left vacant or there could be a delay. You could go weeks or months without an investment return on your property. The snow ball can keep rolling with maintenance cost and general fees. Make sure you don’t get stuck with a property you can’t afford!

Rule #3

Know what you can pay. This sounds simple, but you need to know exactly what you can afford at the time of purchase and later down the track. Have a think about where you would like to invest and have a price-range already in mind. You can start simple by using our loan calculator here! Once you’ve started your search with your approximation, contact your mortgage broker to get that expert knowledge that will mean the difference between get the most out of every cent now and only seeing the benefits later.

Rule #4

Leave it to the professionals! Now hear use out… if you’re considering investing in property you’re the kind of forward thinking person we love! But you don’t have to do it alone. We have access to property data and trend analysis that can produce the reports you need to make sure your looking in the right place. These reports are really detailed, we can tell you how that area has performed in the past, median house price and rate of return. You’ll also want to know property value increased over the past 5 to 6 years to make sure your investment is going to do the most for you. These are all details we can access for you.

 

So now you know the rules of investment it’s time to get started! Contact the Rise High team here or leave your details below.

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