Many Australians have considered buying income property, but are not sure how to do it. Hard working people often consider themselves unequipped to buy investment real estate, but are actually quite capable of doing so.
Sometimes all it takes to make a big difference to your finances and begin a new wealth strategy is taking that first step outside the box.
Here are a couple of simple truths that may help you get approved for the property investment loans you need:
Homeowners have bargaining power
Owning a mortgage can be a lesson in budgeting. Successfully setting aside a certain amount of your income each month for your repayments, bills and home expenses likely means that you have become quite good at managing your money.
Even better, with every payment towards your principal, you are one step towards paying off your home loan and building up equity in your property.
If other aspects of your finances are stable and you meet lending criteria, this means that you are in a good position to secure an investment home loan.
Banks value customers with a positive borrowing history and who offer business for the future, so one way to buying an investment property is using what many Australians already have.
You don’t have to go it alone
If you have not yet established yourself as a preferred borrower, there are other avenues that could help you secure your first investment property.
Utilising the equity of a family member or partnering up with somebody you can trust can help you to round out the financial backing needed to get you started.
While every lender has its own criteria and there is not a one-size-fits-all solution, it may benefit you to explore other options when it comes to putting down a deposit and securing finance.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.