Buying an Investment Property
What you need to know about buying an investment property
What you need to know about buying an investment property
From planning for your retirement, to building your wealth, or getting onto the property ladder, there are many reasons why investing in property can be a good idea. Whether you're looking to buy your first investment property or you've purchased one before, we're here to help you on your journey of purchasing an investment property.
The journey to buying an investment property is similar to venturing into the great unknown and can be filled with endless stumbling blocks and difficult decisions that need to be made. We've gone to great lengths to break down the jargon barriers and help you navigate your investment journey with ease.
Here are some of the benefits of banking with us when you're buying an investment property:
Buying an investment property can be a life altering venture with many highs and lows along the way. Either way, we're here to help simplify the process.
When purchasing an investment property it's important to consider all your expenses, including not only the more obvious upfront costs, but also the ongoing costs of property ownership too.
Now you know what your upfront and ongoing costs will be during and after purchasing your investment property, it's important to drill down on your budget. Every investment journey should begin with a clear budget in mind.
When organising your budget don't forget to also include what you plan on saving per month to help you work towards any future financial goals you might have. BOQ Money can also take the hassle out of budgeting by allowing both BOQ customers and non-customers to easily find out where their money is being spent. Remember your borrowing power will be likely be affected by your income and also your expenses.
As an investor, typically your financial situation will be a little more complex. It’s probably best you work with your bank and financial advisor to fully understand your borrowing power and the right investment property loans for you.
These tools make it easy to calculate how much you can save based on your income and expenses. These calculators can also help you determine what you're spending and where and how you can monitor your monthly expenses to make your investment property purchase easier.
Choosing the right investment property home loan is just as important as finding your own home loan for your primary place of residence. Your investment home loan needs to have all the features that suit your individual needs.
For tips on how to pay off your investment property sooner check here
Now you've chosen your loan, understand your budget, upfront and ongoing costs, it's important to know what you also need to consider.
For our top tips on how to pay off your loan sooner check here
When you're applying for an investment property home loan the lender will asses you on many factors. One factor will be what equity you currently have. The assessment will be broken down into three categories; what you earn, what you owe, and what you own.
What you earn
What you own
What you owe
Primary identification
Secondary identification
Once you have reached an agreement with the seller, the settlement process on your investment property can begin. On settlement day, your legal and financial representatives will ordinarily meet with the seller's representatives to transfer the ownership of the property from the seller to you (the buyer). The settlement date is set in the contract of sale, and is typically between 30-90 days.
Know what your repayments are for peace of mind
A fixed rate home loan gives you certainty for up to 5 years without worrying about potential interest rate rises.
Pay off your home loan sooner
A discounted low rate home loan with all the great features including:
We’re here to answer any questions you may have.
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