Investment loans | Mortgage Broker in Cessnock, Central Coast, and Maitland
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How to find a property worth investing in
Investment properties are properties that are bought to sell for a greater value than the initial purchase price, typically with renters occupying the property to offset expenses during the time of appreciation. Great investment properties can earn investors large amounts of wealth with ease; however, without knowing what to look for in a property to determine its potential worth, investors can find themselves in a less-than-ideal position.
When looking to secure an investment property, look out to see if the property as the following features:
- Desirable location - is it close to lifestyle areas and/or close to public transportation and amenities?
- Ability to appreciate - is the property built in an area with developments planned for the future?
- Convenience - does the property have convenient features like secure parking, proximity to workplaces and/or schools?
- Livable condition - does the property require any repairs, or is it ready to be put on the market for new renters?
Every property is different, meaning knowing what features and benefits a property can provide to future buyers is essential in assessing the property’s ability to appreciate.
If you’re curious to learn more about assessing properties for investment opportunities, reach out to your local broker, George Wilson, for expert advice.
What interest rate structure is better for you?
When you’re looking to purchase an investment property, you’ll need to secure an investment loan to get the ball rolling. Investment loans, like properties, come in many different shapes and sizes, with no true one-size-fits-all option available.
One of the most common hurdles you will encounter when choosing an investment loan is determining which interest structure is more suitable for you: a variable interest rate or a fixed interest rate.
Variable interest rates are typically flexible and have lower interest rates than fixed interest rates. Variable rates can even decrease in cost should the official interest rates be reduced. However, just as easily, variable rates can increase should the official interest rates be raised. The flexibility of variable rates creates inconsistency in your expenditures, meaning it can be quite difficult to budget while on a variable interest rate loan.
Fixed interest rate loans, however, provide a stable interest rate consistently throughout the loan's lifespan. This makes fixed rates easy to budget around as your repayments are consistent. However, countering this convenience comes a typically higher interest rate than baseline variable rates.
George Wilson can help you navigate your investment loan options and provide guidance on what options are more suited to your financial needs and goals. Get in touch with George Wilson, your trusted Mortgage Choice broker for Cessnock, Maitland, and the Hunter Valley today.
For more information on what investment options are available to you, connect with George Wilson today on 0413 473 005.
George is experienced in all areas of the property market, including but not limited to:
