Should you seek professional advice before investing?
Buying an investment property may be one of the most significant purchases you make in your life, so it’s important to get advice and understand your investment strategy before making any decisions. Darren says the first and most important thing to think about is why you are purchasing an investment property.
“A big mistake that a lot of people make is they invest their money before they work out what their investment structure and strategy will be. There are a lot of costs associated with an investment property, not just mortgage and interest repayments, and you need to think about things property management fees, how you’ll pay maintenance costs, how you’ll cope if the property is vacant for a period of time. You need to think long-term, not just short-term.”
“Sit down with a trusted adviser, whether a financial adviser or mortgage broker, and work out what you are trying to achieve. Chat about what kind of investment loan or home loan lenders might be able to give you, as well as the potential loan repayments and interest payments. Then understand where you are at now and could be in the future – ask yourself some ‘what if’ scenarios. Once you can tick all the boxes, then you can go forward in confidence,” says Darren.
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Disclaimer: While we've tried to be as helpful as possible, this article should not be taken as professional financial advice. It contains general information only, and you should seek out independent, professional advice before making any financial decisions. Metricon is an Australian company who builds homes in Sydney, Melbourne, Brisbane and Adelaide.