Are you considering buying an investment property?
The word on the street is that 2023 will be the year savvy property investors return to the market, with some experts saying all the right elements are in place to establish opportunities for strategic investing. Let’s take a look.
• Property prices are decreasing in many markets, while rents are on the ascent. Rents rose by a record high of 10.2% in 2022.
• Vacancy rates have been at record lows, with sturdy competition amongst renters for available properties.
• Migration has resumed and overseas students are back.
With the shifting interest rates and increasing cost of living, it’s important to plan ahead and budget for possibilities if you’re purchasing an investment property. Factor in any additional rate rises or unexpected costs.
Properties may seem to be a good deal, however could possibly come with defects.
As with any property purchase, make sure you get building and pest inspections done, so that you are informed of any issues that might occur.
Savvy investors realise that wise investing is all about finding the right property in the right location. And that might not necessarily be just down the road. Your 1st Street Mortgage Broker can tell you that there may be opportunities in other markets to discover, so be sure to do ample investigation into which areas are doing well in the current climate.
With the cost of living through the roof, never before has it been so important to find an investment loan that offers value for money. Speak to your 1st Street Mortgage Broker to see if we can find you an investment loan that meets your specific needs – whether it’s flexibility you’re after (and features like an offset account), a competitive interest rate, or both.
In recent years we at 1st Street have seen big changes in the property market. Keeping up to date with things like interest rate variations, property price changes and auction activity is vital if you’re planning a 2023 property purchase.
As an investor, you’ll also want to think about vacancy rates, capital growth developments, rental returns and yields.
Core Logic is a fantastic resource to find all the latest property market news. You can also ask us for a free report for significant insights into property prices, comparable sales and much more.
Once you grasp the local property market, you’ll be in a better situation to negotiate. For example, if property values have decreased in the suburb you’re buying in or properties are staying on the market for longer, property owners may be willing to discount in order to reach a sale.
And if there’s something in particular you would like, don’t be scared to ask for it. For example, if you’re buying an older property and feel that repair requests should be part of the sale agreement, negotiate for it.
Buying an investment property is a journey, and it all starts with that first step – getting in touch with us – your local 1st Street award winning Mortgage Broker. We’ll go over your budget and finance requirements, a loan repayments calculator, and then begin the process of organising pre-approval on your finance.
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We can help get you into your new home.
We’ve worked with clients across Australia to access the different first home owner grants (FHOG) as well as the various stamp duty and other concessions that may be available depending on which state you are in. We can talk you through your various options as well as helping you compare things like buying vacant land vs. an established home.
Use our online calculators to work out how much you can borrow, loan repayments, stamp duty and lots more.
