Property like all investments requires you to research the market you want to invest in. Even with the recent interest rate volatility property can be a viable investment. Rising property prices and the shortage of rental properties means there can be substantial returns on your investment.

What If We Finance can help you make the most of your property investments and here are some important things you need to know.

The Australian economy and property markets go through high and lows. Historically the typical cycle has been around 6 to 9 and there will always be period where property values may fluctuate. By ensuring you are comfortable with your investment, the level of your borrowings and know what your financial goals are you will be able to manage your investment.

Fixed rate products are great products to help maintain the household budget because the repayments will not change during the fixed period.

Negative Gearing occurs when property expenses (such as interest, rates, repairs and maintenance) exceed your rental income. This means the loss on the property can be offset against any other taxable income your earn resulting in tax benefits to you. It is important to remember that negative gearing alone should be a reason to purchase a property. You still need to invest in a property which experiences capital growth.

Contact your What If We Finance Mortgage Broker for more information on how negative gearing can benefit you.

Understand the market you want to invest in. This means reading property related articles, looking at growth trends for areas you are interested in , use the internet and also talking to experts. At a minimum you will need to gain an understanding of rental yields for the area you want to invest in and also form an expectation regarding future property prices.

It may also make sense to use the services of a buyers’ agent. They can provide expert advice regarding expected returns, rental yields and what is a fair and reasonable property price.

The equity in your existing properties can be used to fund the purchase of an investment property. For example if your house is worth $400,000 and you owe $150,000 you can use the $250,000 to invest in another property or properties.

There are literally thousands of home loan on the market. You need to find a home loan that suits your current needs. With the constant stream of new products entering the market it makes sense to use the services of What If We Finance to make sure your existing home loan product continues to meet your needs.

Contact your What If We Finance Mortgage Broker today for a free home loan assessment.