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Buying an Effective Investment Property

How To Buy Investment Property

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A significant portion of the population are now buying more than one investment property and the recent property boom in Melbourne has also been driven by property investors. A question mortgage broker What If We Finance answers often is what should I avoid when buying an investment property. This article explains some of the important factors that banks look for when assessing an investment property.

Undesirable properties

Banks have a list of properties they prefer not to lend to and more often that not this includes student accommodation, defence housing, small apartments, commercial properties and properties in a business or mixed zoning or in country or outer coastal areas.

In such circumstances banks restrict the percentage they will lend against the property and this needs to be a factor if you are financing the purchase of an investment property.

Banks like to avoid properties with rental guarantees and certain inner city post codes and surrounding areas may have lending restrictions.

“Off the Plan”

Be cautious when evaluation Off the Plan properties especially when the offer includes rental guarantees, free holidays and other inducements. Also while you may be saving stamp duty developers often pay 10% GST and this may be factored in to your property price.

Also with a significant rise in new apartments hitting the market you need to ensure you pick an area with good capital appreciation prospects.

Analyse and Plan

As a property investor you need to research rental returns, property values and property conditions. Do not just rely on real estate agent appraisals. Also you need to have funds set aside to cover unforeseen expenses and potential interest rate rises.

a client getting the keys to an investment property

Chasing negative gearing and not capital growth

While the tax benefits associated with owning an investment property are attractive you are ultimately buying the property to create wealth. Do not be seduced by high rental yields. In the current market if the property looks too good to be true be wary.

Also avoid properties in towns with 1 industry such as mining towns. While in boom times property prices may grow, experience shows that property prices can fall hard during the lean times.

What If We Finance can help you by providing property reports and market intelligence so contact us today. As always please consult with your financial advisor before engaging in the purchase of an investment property.

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Matthew B
Matthew B
2022-06-05
Looking at the reviews for What If We Finance, it comes at no surprise to see so many 5-stars. Spiro handled the mortgage part of my girlfriend and I purchasing our first home. He made himself available to us around the clock and ensured that we were across the entire process and felt as comfortable as possible. We're very fortunate to have gone about buying our first home with Sprio and we'd be more than happy to use him for future purchases and to refer on to family and friends. A big shout out to Agnes also who busily works away in the background and also does an incredible job. You guys are the best!
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hari gowtham
hari gowtham
2022-06-03
Very happy with the results from Spiro from start to finish. Spiro and his team are very knowledgeable and have a very quick turnaround time. Couldn't be more happier with the service. Definitely my go-to person for upcoming purchase.
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Gary Shekhter
Gary Shekhter
2022-06-02
Great broker and trustworthy. Honestly had seen 5 brokers and fund this wonderful guy. Who helped from start to finish fast and had our loan in no time at all. Thank you again champ you did an amazing job
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Leonie Kemp
Leonie Kemp
2022-05-29
Thank you Spiro and Agnes for helping with the purchase of my first home. I needed to arrange finance quickly and Spiro did a fantastic job letting me know the best options for me and pushing to get the pre-approval so I didn't miss out on purchasing my home. Everything went very smoothly, thanks for helping make my first property purchase straightforward.
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S S
S S
2022-05-28
Thank you Spiro and team for your help in financing the mortgage for the recent property purchase. Spiro provided timely advise, guided me on the process and was swift in processing the documents. His friendly attitude makes the process even better. Thank you once again.
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Anita Naughton
Anita Naughton
2022-05-27
As a first home buyer I had very limited knowledge on what I needed to do. I searched for a broker and What if we finance stood out due to reviews. I had my first session with Spiro and never looked back! The whole process was seamless, I felt supported and could always connect with Spiro when needed. Spiro and Agnes are experts in what they do and I would highly recommended anyone looking for finance to choose What if we finance. I will be a lifelong customer and look forward to buying our next house with their support.
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Mahmoud Al Kilzi
Mahmoud Al Kilzi
2022-05-25
Spiro & his team did a great job by getting my loan sorted in time. I would recommend them to family & friend. Great work guys much appreciated.
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Rebecca Zeeman
Rebecca Zeeman
2022-05-20
Spiro and Agnes provided great help and advocacy in getting us our home loan. We felt they were always available and were super efficient in getting it all done on time! The process was so simple and without stress thanks them both.
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Irish Azcuna
Irish Azcuna
2022-05-09
I can’t thank Spiro and Agnes enough for making my first home purchase so efficient, stress-free and seamless! If I could give more than 5 stars I would. As a first home buyer applying for one or the government’s schemes, my situation would have been so complicated that I never imagined being able to complete the process in such a short time. Spiro’s in-depth knowledge, invaluable and always-available support, and genuine willingness to help get me the right mortgage for my situation, made everything possible. His pragmatic advice even helped me decide on the right property for us, which would help us achieve our long-term goals. I highly recommend Spiro and his team. We will definitely engage their service again for our next property. They are the best!
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Renee Briggs
Renee Briggs
2022-05-02
Spiro is reliable, has your best interest as his top priority and is fast to get great results. We wouldn't ask anyone else for their professional opinion- Spiro is the best in the business.
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