What to consider when buying an investment property


It can be very daunting taking the first steps towards purchasing an investment property.  This can be the case for both beginners and seasoned investors. 

It is therefore essential you consider the key concepts and issues before taking the plunge on your key investment.  With the right planning and expert advice you will be entering into the investment market with confidence and the ability to maximise any opportunity  that you are confronted with.

Some of the key issues are discussed below:


Mortgage Broker

Many people wonder if it is advantageous to use a mortgage broker or if they are better advised to research loan products without the use of a specialist broker.  When considering the use of a broker, it is worth noting that they do not charge for their service, they receive a commission from the loan provider when the loan is confirmed.  The advantage of a mortgage broker is the ability to have access to a wide variety of loan products that can be recommended according to your preferences.



As with any real estate purchase, a Lawyer / Conveyancer is essential.  It is imperative that prior to signing any contract, you seek personal legal advice to ensure you are aware of what is within the contract and what you are agreeing to.  Further to this a Conveyancer can ensure there are no legal issues surrounding the ownership of the land (e.g. government land or easement).



It may be worth considering the advice of an accountant who can take into consideration your entire circumstances and may be able to provide advice to meet your future goals.  A good accountant who specialises in property investment is ideal and they can also assist you with the best advice to manage tax across all your investments.


Interest Rates

As discussed on an earlier Alert Property Group blog; there are certain situations in which a fixed interest loan is considered the best.  For example, if you are purchasing an investment on a single income and your repayments have an income ceiling; rising interest rates may put you into arrears or worse.  Also if you are considering any major life changing events such as childbirth, then having the stability of a fixed loan would also provide peace of mind and financial planning abilities surrounding the life event.

Those who prefer a variable rate are usually predicting interest rates to stay relatively low or continue to be lowered in the future.  If the prediction is correct, substantial savings can be made over the course of the loan period.  There are also hybrid fixed and variable loans that may be an option for those with specific circumstances.

The above four items are considered the best starting point when considering an investment property.  If you require more advice, contact us at Alert Property Group.