Are you thinking of talking to a mortgage broker about a home loan for an investment property in Baldivis, Kwinana or other suburbs in the Rockingham area? While we have helped a lot of people obtain loans for investment properties, it is now more difficult, thanks to new Australian Prudential Regulation Authority (APRA) guidelines.
APRA has asked all lenders to cap the percentage of growth in investment loans at 10% per year. This has tightened up the credit market for investment property. Here are five questions to ask yourself before you start if you want to invest successfully.
Why Am I Doing This?
Are you looking for immediate cash flow? Retirement income? Do you want to grow as fast as possible so you can become a full time real estate investor? The strategies for each are different.
Where Will I Get My Deposit From?
Part of the tightening process by lenders is to require a 20-30% deposit on investment property. They are limited, so they want to only provide the loans they are most assured will be paid back. Do you have savings? Do you have equity in your home that you can tap into? Know what you need and where it is coming from.
What Location and Property do I Want?
People who bought homes in Baldivis have prospered the last few years. It pays to know which suburbs and neighbourhoods are poised for long term capital growth. You may want to subdivide a large property. You may want units. Make sure you have a plan.
What Kind of Loan Do I Need?
There are so many choices, such as interest only, variable rate, fixed rate, loans with offset account options, to lower interest.
How Much Can I Borrow?
It pays to know exactly how much you can borrow so you know what you can afford to buy.
Call Smartline Rockingham Today
Our mortgage brokers at Smartline Rockingham are experts in helping you find the right loan with the right terms. We can often get pre-approval for a specific amount within 24 hours. Call us today to learn more: (08) 9527 1800.