With Australian interest rates at an all-time low, for many Brookwater and Springfield locals, now is the perfect time to look into buying an investment property - especially in the local West Brisbane area, where property prices are starting to increase significantly.
Investing at the right time is always key, of course, and if you're looking at an investment property, please chat to the Zest team first - we are experts in the West Brisbane property and loan market.
Investment market statistics
In February 2021, Core Logic, an industry research group, reported that Australian property prices have increased at their quickest rate in 17 years and increased by a remarkable 2.1%in a single month. Combined with the lowest interest rates on recent record, investment property is right now one of the most attractive investment opportunities - even more when you consider the unpredictable stock exchange fluctuations from Covid-19.
Property investment step 1: - Create Your Plan
If this is your first investment property in the Brookwater or Springfield area, success always starts with a solid plan that outlines your investment goals and concerns. Investing in the rental property market is, of course, a financial commitment - and in our experience here atZest, it's the investors that plan the best that see the best short and long-term results.
Here are some investment planning considerations:
- How long do you want to own the investment property?
- Do you plan to ever live in the investment property?
- How much do you owe on your current home?
- How well do you know the local investment property area?
- How well do you know the local rental market?
- What trends and reports can you get access to?
TheZest investment property guide
Please feel free to head over to the Zest guide page and download our free "Investing in property guide" for some more information on what you need to consider. This guide explains investing such as tax consideration, investment property types and more.
Property investment step 2 - Your Deposit
Once you’ve planned your investment property and goals, you'll then need to consider your deposit. As with almost every home loan, a 20% deposit is recommended when investing in real estate.
If you are new to investing in property but own a large portion of your own home, you might have suitable equity without the need for a cash deposit. Another option is to look at a loan guarantor, usually a relative who has sufficient property equity and can provide a repayment guarantee. Naturally, this is not what we would suggest as the best option, but for many new Brookwater and Springfield property investors, they would not be able to get ahead with such options.
With a suitable deposit or guarantor, it's time to start considering the loan type that will best suit your goals. This is when a mortgage broker like Zest can be of incredible help, keeping in mind that we work for you, not the banks - ensuring your mortgage is the best for your situation is what we do.
Property investment step 3 - Know Your Property Costs
While you can get an investment property loan without a cash deposit, there are still the upfront and ongoing costs that require cash flow with any rental property.
Invest property one time costs
Like any home, an investment property incurs the standard property upfront costs including stamp duty, solicitor, application fees and even pest and building inspection fees to ensure your investment property has no major pests, building defects, or illegal work has been carried out on it.
Investment property ongoing costs
With an investment property and almost every investment, there will be ongoing costs. The Brookwater Zest mortgage team can outline these for your specific investment and include potential fees for:
- Accountants and tax agents
- Council, land tax and water
- Body corporate fees
- Property insurances
- Advertising costs
- Loan interest
- Management fees
- Repairs and maintenance
Property investment step 4 - Applying for Your Loan
You'll have a few options at this stage, such as working directly with a bank or engaging a mortgage broker.Around 70% of all Australians use a mortgage broker, as it makes everything easier.
Mortgage Brokers like Zest work for you, not the banks, and we negotiate with 47 different leading lenders.It's our job to get you the best loan for your investment property goals.
Like to know more?
If you are looking to invest in Brookwater, Springfield or the wider West Brisbane property market, please feel free to contact Mel and the Zest team. We've helped hundreds of delighted investment property owners get into the market at the right time. We’ve also offices in Springfield, Ipswich & Flagstone - but help clients all across Brisbane & Queensland!
