The city of Brisbane has been dubbed a property investment hotspot by leading experts. Thanks to its affordable property prices and ample room for capital growth and rental yield potential it is the place for first-timers to secure their first investments and for experienced investors to boost their portfolio. Before dipping your fingers into all that the beautiful city has to offer, you may want to study up on property opportunities and come up with a powerful loan structure before going ahead with any green seals of investment deals.
So what should I consider before making a property investment in Brisbane?
Like investing into any property it is wise to research the:
- City’s population growth
- Vacancy rates
- Employment
- Lifestyle
- Rental history
- Infrastructure developments
2017 is THE year to enter the property market and the current landscape of Brisbane’s real estate serves as a fantastic chance to score some property bargains.
If you’re planning to invest in Brisbane but are unfamiliar with the ebbs and flows of the city you may want to check out realestate.com.au to get a snapshot of the suburbs and how they are currently performing on an investment level. Before putting your finger down on your dream property investment it is super important to ensure you structure your loan properly right from the get-go for promising results. To save you from sorting through piles and piles of research we’ve provided you with four key principles that you can use to structure a successful loan in which you can leverage to score the best deals that Brisbane has to offer.
Which loan is in your best interest?
In this day and age, everybody’s financial situations differ and therefore a ‘one-size-fits-all’ loan simply doesn’t exist. However, at Nexus Money we generally recommend interest only (IO) repayments as a first consideration wherever possible. The benefits from going IO include smaller repayments, more affordability for first mortgages and tax concessions. It also acts as a great option if you are looking to renovate as it can free up more of your budget for home improvements!
Preventing property cross security
To keep your investment options open throughout Brisbane it’s important to avoid the pitfall of property cross security. This is when two properties secure the same debt and the financial fate of both your home and an investment can become intertwined. It is, therefore, best and safer to opt for stand-alone security where each of your loans is secured by one property respectively. By keeping it simple you will gain ultimate control and upon a potential sale of a Brisbane property, your entire loan portfolio won’t get dragged into the question.
Accessing equity to purchase another property
Equity is the monetary difference between what your home is worth and what you owe the banks and acts as a marvellous tool to leverage wealth creation through property investment. By paying off your home loan, relying on the capital growth of your abode or renovating your property your equity can soar and potentially be used to help you out in making an investment on a property in Brisbane. To find out more about accessing your equity to purchase another property read our blog here.
Master your finances by managing multiple loans
The sound of managing multiple loans and accruing more debt can be a bit overwhelming, but lucky for you, Nexus Money can help you make safe and profitable financial decisions when investing in property. When making the leap to invest in Brisbane the management of multiple loans will be inevitable, so when you’re seeking independent financial advice, Nexus can assist you in weighing up your options before making a final choice.
