The steps successful people take to invest in property

Find out how much you can borrow

Based on your income and your liabilities, do you have adequate borrowing capacity to approach a lender for an investment loan?

Has you home grown in value over time and is there equity that you can use to invest into another property?

Tip: when assessing your borrowing capacity the lender should take into account that you will be earning a rent every month from the proposed investment.
Before you start looking for an investment you should get the go ahead from a lender willing to work with you to help you grow your investment portfolio.

Approval in principal

Gather up the documents you need To make an application for an AIP. You will normally need these documents from the list below:

Proof of income. This is normally 2 recent payslips or if you are self employed then you will need your last 2 years tax returns, profit and loss and Notice of Assessment from the ATO.

Proof of ownership: You will need your most recent Rates Notice from your council or shire for your own home.

TIP: ensure that your rates are paid and up to date, becasue if not the lender may decline your loan application.

Home loan statements: You will have to provide the last 6 months statement from your home loan.

Tip: make sure you statement are not in areas or have late payments, as the lender will decline your loan application.

Identification: you will require to have copies of your drivers licence for your investment loan application. Please ensure you copy both sides of the licence.

APPROVED- now you know how much you can spend

Property analysis

Its now time to research and analyse the property market based on the money made available from your lender.

Where to buy: every suburb has its strengths and weaknesses. Successful investors buy property based on a combination of short and long term strategy.

Price point: for the majority of investors the price is dictated by the amount of money made available by the lender. Using this capacity to buy in the most suitable suburb needs a certain amount of market knowledge, research and experience.

Net rental return: this is the amount of rent you will receive after deducting all the expenses. Management cost, insurance, water and other services, council rates and vacancy loss.

Capital growth: every suburb has short and long term growth results. These statistics must be analysed keeping in mind development and other factors that may raise or lower the capital growth.

Rental demand: this is extremely important as it is important to keep your investment always with a good tenant. An investment property which is not rented is costing you money every week.

Cash flow: before purchasing an investment every successful investor needs to know if the property will cost them money from their own pocket or will it cover its cost.

New or established

To build or not to build

A new home will give an investor the following savings and may benefit them in the short and long term.

Stamp duty: when building an investment home in Victoria there are substantial stamp duty savings.

Maintenance: a brand new home comes with warranties and guarantees, these will significantly reduce your maintenance expenses. A new home is relatively trouble free for the first 10 years of its life.

Tax savings: a brand new home will give an investor a sizeable amount of depreciation, which may help reduce personal tax thereby giving the investors a refund.

We provide you a comprehensive property analysis

What We do for you

At Victorian Finance Group we provide you all the support you need to understand your financial options and also give you Financial Planning advice if required.

Besides our Credit Advisors we also have Financial Planners and Tax Accountants to help make you a successful investor.

Invst australia

Is the property arm of Victorian Finance Group. Invst provides the following services:

Building new homes for clients entering into the investment market through our trusted group of builders.

Proving investors with a comprehensive analysis before they buy.

Coordinating the whole investment process all the way to finding a suitable tenant.

Finding land in the right suburb for our clients so that they build in the best possible location.

2/29 Princes Hwy. Dandenong. Vic 3175 Tel:

9791 5547

Credit Licence: 389287

Credits:

Created with images by free pictures of money - "Money" • PublicDomainPictures - "approval female gesture" • hugorouffiac - "disintegration parkour urban"

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