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Rules of investment

When you’re trying to secure finance for an investment property, it's important to remember a few simple rules in mind to make sure you will get the best deal possible and will be able to afford the repayments.

If you are planning to purchase an investment property, it's crucial to managing the risk adequately. For example, you shouldn’t rely on rental returns an a guaranteed income to meet loan repayments as they are times when a property may be vacant or hard to find tenant immediately, and some months the rental income may be used for maintenance costs.

A good finance broker will help a borrower to find the right product and make sure he or she can afford the repayments. Beside of that, the lender will also add an extra two per cent rate hike as a buffer in their assessment to make sure the borrower still can make repayments when the interest rates have gone up.

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 with, a finance broker can use their expert knowledge to sense-check and flesh out your plans.

With access to property data and trend analyses like RP Data, a finance broker can generate property reports for you, detailing 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 has increased over the past five or six years. There are details that investors generally can’t access.

Please come talk to Kevin Poh on 0415820016, and he will help you get the most out of your property investment.

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