When you're trying to secure finance for an investment property, it's important to keep a few simple rules in mind to make sure you get the best deal possible and will be able to afford the repayments, come what may.
Managing investment risks adequately
If you're thinking about purchasing an investment property, it's important to manage the risks adequately. For example, you shouldn't rely on rental returns as a guaranteed income to meet loan repayments, as there are times when a property may be vacant or hard to fill immediately. Some months the rental return on a property may be diminished by maintenance costs.
"SFE Loans will help a borrower find the right product, so that he or she can afford the repayments," says Sarah Eifermann. "We will add in a two per cent rate hike onto the rate the borrower will be looking to take, to make sure they can still make repayments if, or when, mortgage rates go up."
Appropriate planning
Most investors will already have put some thought into where they would like to invest and will have an approximate price-range in mind. While a loan calculator is a great resource to start out with, a the team at SFE Loans can use their expert knowledge to sense-check and flesh out your plans.
Investing in the right area
With access to property data and trend analyses like RP Data's, SFE Loans can pull property reports for you. The reports detail how the area has performed in the past as an investment, the average median house price or rate of return, and how much the property values have increased over the past five or six years. These are details that investors generally can't access.
SFE Loans can help you get the most out of your property investment. Give us a call today!
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