Buying an investment property is no longer a feat reserved for the wealthiest members of Australian society. A growing number of Australian’s are now seeing investment properties as an achievable goal and a reliable means for enhancing personal wealth. And with interest rates at historic lows, now could be an ideal time to consider whether you’re in a position to buy an investment property. Using a mortgage broker for investment property QLD you can better know your investment property goals.
Why Buy an Investment Property in QLD?
Investment properties have always been viewed as a fairly safe and secure way to achieve long-term financial gains. Despite the tumultuous year that was 2020, Queensland property prices haven’t been particularly affected. In the first few months of 2021, the Queensland property market experienced growth at a rate of 5.3%, with a new report prepared by the ANZ Bank speculating that Brisbane house prices could go up by a total of 16% before the end of the year. Property price growth is expected to slow down next year, but Queensland is still forecast to see a further increase of 8% by the end of 2022.
If you’re interested in the idea of buying an investment property, a mortgage broker can help. An experienced investment property mortgage broker in QLD can answer your questions, provide tailored advice and support you throughout your investment property journey.
Why Use a Mortgage Broker for Investment Property in QLD?
Initially, the idea of buying an investment property may seem overwhelming. It can be difficult to know where to start and who you should be talking to for the right advice. An investment property mortgage broker in QLD can outline the various paths available to you for securing finance. But more than that, a Queensland property investment mortgage broker is familiar with the local market and knows which suburbs are of particular interest to investors. An established finance broker will also have industry contacts that can offer further assistance, such as local real estate agents and property managers.
What an Investment Property Mortgage Broker in QLD Can Help You With
An experienced investment property mortgage broker in QLD can help you achieve your goals in several different ways. This includes:
Giving you access to the widest range of lenders
As an independent investment property mortgage broker in QLD, Coronis Finance has access to an extensive panel of lenders offering a range of finance options. When you approach a lender directly, you’re limiting your finance options to whatever products that particular lender has available. But by working with an investment property broker, you won’t have to worry that you’ve missed out on a more suitable investment loan somewhere else.
Not charging you for their services
While some property investment mortgage brokers in QLD will charge a fee for their services (usually a flat rate or a percentage of the loan total), not all brokers operate in this way. At Coronis Finance, we don’t charge customers a fee or a commission for our services. Our brokers will receive a commission from whatever lender you decide to apply through, but only once the loan has been approved and settlement has occurred.
Providing you with tailored advice
Our team of investment mortgage brokers have an extensive knowledge base built on years of experience spent working in the finance industry. We’ve worked with all kinds of property investors and we understand that not all loans will be suitable for every property investor. This in-depth knowledge allows us to provide tailored advice to suit your specific circumstances and future financial goals.
Using the latest technology for your benefit
At Coronis Finance, we use the latest software to compare all the available loan products as quickly and accurately as possible. This allows us to identify which investment loan options are going to be best for your particular situation. We can then provide further guidance based on our knowledge of the lender and the products offered.
The Different Types of Investment Property Available in QLD
Buying an investment property is very different to buying a property that you’re planning to live in. Because of this, your pre-purchase research and objectives should also be quite different. Instead of thinking about where you’d like to live, you’ll need to consider questions such as:
- Which suburbs are experiencing strong growth?
- What are the rental vacancy rates?
- What kind of rental yield can you expect?
- What kind of property renters are most interested in (e.g., an area with a lot of students may see more interest in apartments than in 4-bedroom homes)?
The two most common types of investment property in Queensland are those negatively geared for long-term growth and those that provide positive rental yield.
Negatively geared for long-term growth:
This means the property isn’t making you money in the short term. In fact, a negatively geared investment property will be running at a loss because the income generated by the rent is insufficient to cover the cost of owning the property (maintenance, loan repayments, council rates, etc.). But a negatively geared investment property will deliver some tax reductions in the short term and will ideally increase in value over time. So, you’ll make your profit when you eventually sell the property.
Positive rental yield:
This means your investment property generates sufficient rent to cover all the ongoing costs of owning the property, with money leftover to supplement your income. An investment property with a positive rental yield may not experience the same long term property value growth as a negatively geared investment. But in the short term, this kind of investment property will pay for itself and you may be able to pay off the loan faster than you would a negatively geared property (by making additional repayments).
If you’re unsure about the pros and cons of the different types of investment property, then talk to one of the experienced brokers at Coronis Finance for some free advice.
Achieving Investment Property Goals in QLD
If you currently have a goal of buying an investment property, there are 3 simple steps you can take to get started:
Establishing specific goals:
This means having a concrete plan in place and then working towards it. Instead of a vague “I’d like to buy an investment property one day”, you might begin by saying you’re going to pay off your credit card debt within the next 12 months, with the follow-up goal of having a specific deposit saved in 5 years.
Working towards your goals:
Once you know what you want to do, you need to start working towards achieving your goals. Establish how much money you need to be putting aside each month to achieve your goals, then look for ways to make this happen. For example, you could arrange for a set portion of your salary to be paid into a separate account each month. Or you could minimise your expenses (e.g., cancelling that gym membership you’ve hardly used) and try to boost your income (perhaps by taking on an extra hour of work each week).
Getting expert advice:
Don’t wait until you’re ready to buy before you start talking to an investment property mortgage broker in QLD. Getting in contact with a broker early on can help you to get a clear understanding of your situation. They can help you find out how much you can potentially borrow, what kind of a deposit you’ll need and whether you may be able to access the equity in your current home to help improve your finance options.