Using the equity in your own home may give you the buying power you need to firm up your application with a lender. The equity in your home is essentially the difference between what a lender deems to be the value of your property and any outstanding debt against the property.
Buying an investment property is one of Australia’s most popular and talked about investment strategies. It has been a great wealth generator for some but it has also been a nightmare for others. As with all investments, you should approach a property investment purchase with a clear investment strategy in place.
In a hot property market like we’re experiencing at the moment, it can be difficult to beat the competition at auction. And with auction clearance rates running at around 80% in most capital cities, it’s clear that the majority of bidders miss out on a property they’ve chosen when the auction gavel comes down. So, how can you avoid going to auction? What can you do to secure a property when you don’t have deep enough pockets to outbid the competition on the day?
Choosing the right location is one of the most important factors in the success of a property investment. The right location can differ according to the kind of a property investment you choose – commercial or residential. However, in both cases, the principle is to find a property that will be popular with tenants both now and into the future, as this will support your requirement both for a steady rental income and future capital growth.