Purchasing your first home is a major milestone for any Australian. However, many prospective homeowners are investigating new methods of home ownership, including rental and first home investment properties. Although the process is more complicated than simply choosing a home loan, investment properties have the potential to maximise your income for years on end.
Why buy a first home investment property
Investment properties are an intelligent form of diversification that locks in equitable value while providing housing needs.
Investment properties can provide thousands of dollars of income, allowing for greater passive income in the process.
A first home investment property will generally continue to gain equity over time, providing you with a larger return on investment.
Rental income can be used to pay down a mortgage, whether you’re renting it out directly or subletting to housemates.
Whether you’re purchasing a private residence or a multifamily property, home loan experts agree that buying an investment property before your first home in Australia is an efficient way to generate income.
6 steps to buying first investment properties
Begin the process of buying your first ever investment property by following these simple steps.
Check for pre-approval — It’s important to understand how much money you can spend on your first home investment property, and a broker can help walk you through the process. Use services such as Mint Equity to find a mortgage broker in Sydney.
Prepare for the purchase — Eliminate outstanding debt, save diligently, and continue to improve your credit score. The old rule of thumb used to be saving at least 25% of the home’s projected value for a down payment, but this has evolved over time in part due to increasing house prices. What’s most important is to be able to demonstrate a consistent pattern of saving to lenders.
Look for houses — This includes searching neighbourhoods, performing ROI analyses, and selecting locations that are in high-demand for renters. It’s important to remember that this is not an emotional decision — a house that would be “nice” for you to live in does not necessarily equate to a good investment. Be sure to reach out to real estate agents for help.
Purchase a workable property — Your first-time investment property should be ready to rent almost immediately. If you choose to repair or refinish a home before renting, be sure to factor its cost into your budget.
Hire a property manager — Property managers streamline the rental process without requiring more of your time and money. These experts can be brought on as contract, part-time, or full time employees. Sometimes your estate agent will provide one as part of their service, too.
Consider safety — Focus on the security of your property by purchasing a landlord insurance policy, installing security cameras, and providing privacy hedges. Register as an LLC to provide security for your assets as well.
For other up-to-the-minute property investment tips, please refer to Mint Equity’s Newsroom.
Start your first investment property with Mint Equity
When the time comes to purchase your first investment property in Australia, choose to partner with mortgage brokers who have your needs in mind. At Mint Equity, our award-winning services are 100% backed by Australian-owned and operated brokers, providing a high standard of service that supersedes the competition single every time.
Rather than relying on traditional mediums, Mint Equity leverages cutting edge technology to connect you with local funds – totally free of charge. We act as a helpful hand for lenders and investment property buyers all over the country, and are proud to eliminate unnecessary friction throughout the lending process.
Start your first investment property journey with three decades of Australian real estate experience. Call at any time during our office hours to schedule an appointment at your convenience. We look forward to helping you find your ideal investment.