Nicola is no longer operating as Finance Wise Ltd, she is now flying under the Vega mortgages flag. Still an independent adviser, same phone number... just now with a lot more back up!
Investment Property?
Before you start looking at properties too closely save your self a lot of time and potential stress by :
-
Working out what you are trying to achieve, including time frames- sounds obvious, but you need to be honest with yourself.... Is it a quick flick or are you in for the long haul? Beware the bright line test!
-
Do the maths! A good yield calculator can give you a clear idea of what your return and cash flows are likely to be. We are more than happy to assist you to go through this. 6% net should be your minimum as a guideline.
-
Investing in property has always been deemed a long-term investment, so if this is the case pressure test your plan. The banks will assess your lending at significantly higher interest rates to insure you could still service the loan if rates began to rise. Also, a point to note if your playing on servicing calculators most banks will only use 75% of your potential rental income.
-
Do your homework and get a good feel for the area you're looking in. Including future council plans for the area.
-
Make sure the property you are buying is compliant as a rental or you have factored in the costs of any necessary improvements to meet the regulation requirements.
Bricks and mortar have long been trusted as a sound part of investment portfolio, so no surprises that over recent years this arena has out- performed just about everything else you could have put your money into!
​
A sustained increase in values such as we have seen over recent years has led to understandable concerns that the market has to at least slow or dare I even say "correct" sooner or later. Basic supply and demand have kept the heat firmly on despite new areas for subdivision opening up, COVID etc. The appetite for real estate seems far from satisfied.
The powers that be (the Reserve Bank) have a variety of tools to try to moderate the the increasing market prices. We have seen the LVR introduced (lending to value ratios) and recently adjusted for investment properties, further moves to keep a lid on excessively high LVR lending are likely in the pipeline. Australia have recently reintroduced income to lending ratio caps in an attempt to prevent excessively high gearing. Currently the focus is to try to keep interest rates down and funding available as we (hopefully!) work through the fall-out from COVID. The house of cards scenario is still a painful memory for many. COVID will undoubtedly have financial victims and this needs to be managed.
​
​If your starting out as a property investor getting the right team around you can have a huge impact on your likely success, from accountants, lawyers, surveyors ( if your planning on developing) property managers and of course mortgage advisers..