There can be many benefits to investing in property, which goes some way to explaining why investors are out in full force across the nation. CoreLogic RP Data’s latest research shows that property investor activity is at an all-time high, with loans to investors making up $11.7 billion, just under half the value of all loans.
Nationally we are experiencing more investor activity than has ever been reported in the previous 20 years of available data.

If you are an investor looking to get a piece of the action, or a first time buyer wondering how you are going to compete with all these investors, call us now to find out the best way how.

With interest rates at an all time low, now is as good a time as ever to consider an investment property. Here are some tips that may provide you with some guidance when considering any investment.

1. Create a plan and stick to it. Ask yourself: what would you like to achieve by investing?  Is it capital gain over a set time period or are you buying to generate a rental income? Your financial objectives may determine whether a unit or a house best suits your needs.

2. Set limits.  Determine your own limits before you seek out a loan.  Some lenders may highlight the maximum amount that you can borrow,  so be sure balance this up against the limit that feels most comfortable for you.

3. Secure the right finance. Though interest-only products often suit property investment situations, there is a range of options available. Take the time to contact us for assistance in finding a mortgage that works best for you.

4. Find good tenants. Select the wrong tenants and you may find yourself burdened with serious repair and maintenance costs; if they are tardy with their rent you may even struggle to meet mortgage repayments. If you lack the time or desire to seek out tenants, consider employing a property manager who can manage the property, deal with tenant problems and take care of collecting the rent.

5. Do a health check. If you want to avoid buying a ‘lemon’, independent building and pest inspection may be essential pre-purchase reports.  Not only are they likely to alert you to any faults in the property, they may also help you negotiate with vendors on price should you decide to buy.

6. Know the neighbourhood: Property close to features such as transport, parks, schools and shops will often increase your chances of a good return on your investment.  A sought-after neighborhood will generally increase the likelihood that the property can be easily sold if mortgage repayments prove too difficult.

7. Consider a buyer’s agent: If you lack the confidence or expertise to invest in a property, a buyer’s agent may offer advantages from their skills and experience in determining a property’s value. A buyer’s agent works on your behalf to negotiate the best price and, in general, can warn against poor property investments.

Reference source: http://blog.corelogic.com.au/2015/03/housing-finance-eases-january-proportion-lending-investors-hits-time-high/