Do you want to buy a home? Then you need to know these smart investment or buying strategy to make a better purchase.
Property investment is a game that can be played from many angles. There are many property investment strategies you can choose from, but just like buying shoes not all strategies work for every purchase. That’s why you need to be mindful at all times.
Getting advice from someone who is an expert at financing and investment can help. Many financing advisors favor one strategy while others pay attention to multiple ways to succeed.
Today, let’s hear it from the best and reliable refinancing home loans Australia the smart tips on investment and buying.
Property Investment and Buying Strategy
Basically, there are a few mistakes people commonly do when investment— one is not consulting for a financial service or not being able to strategize their financial application.
More likely, you need to be sure that while you opt to purchase a property through a loan, you must be equipt with a few tips to ensure that you’ll eventually get approved.
Following these tips will surely help you in creating your property investment or buying strategy.
Don’t buy on discounts alone
Don’t easily get blinded by the discounts offers. It is a loan investment anyway, so why not buy the property that’s worth it? More often than not, properties with discounts on it are those that have issues and more areas for repairs and maintenance— having such will be a pain in the head.
It’s for sure that the low or cheap price is a great deal, but are you sure you are getting the best out of it? It’s best to know the area, the tenant’s profile, the rental yield and even the history of the property.
Understanding the rental yield
It does not matter if you are investing houses for capital growth or for rental income, it’s best that you understand how rental yield works and how it will affect you. The rental yield can be calculated by dividing the total investment by the total gross yearly income from the rental. Doing this calculation better helps you defining whether the property will help you earn enough rental income to cover the costs of maintenance and a lot more.
Buy and Hold investment
The buy and hold is a type of investment strategy that advisers and professionals favor. It refers to acquiring property with the goal of generating long-term capital growth. You will usually buy a property that appreciates in value over time, which comes with live-in tenants to help you pay off the mortgage.
Renovate to sell
This is one of the best investment strategies and it works effectively too. Buying a property to renovate is a way of manufacturing equity, allowing you to sell the property quickly in a process called “flipping”. Most likely, financial advisors in refinancing home loans Australia prefers this strategy more than anything else as this can be a good start to generate more and more cash flow.