Risk Minimisation

Before each property purchase – be it your home or an investment property – you need to have a definitive exit strategy.

This is one form of risk minimisation…

It’s one way that you can greatly reduce your risk and improve your comfort level…

For instance, if your strategy is to renovate, you might consider renovating to a standard just above the median value for the area so that you are always able to rent your property quickly.If it’s in high demand, and this also gives you an emergency exit strategy.

Here’s how: consider that something goes wrong (or something goes right).
– You need to have cash fast and you have to sell your property.
– If your property is just a bit better than the others in the market, then in theory, you should be able to sell it quickly, especially if you are prepared to accept the median price for the property.

In other words, you should have a plan B for every decision that you make for property investing. This will give you a low risk property investing strategy…

If you’d like a complementary call to talk with one of our mortgage experts then book a call http://investorschoice.com.au/bookacall

#seeit #propertyinvestment #realestate #riskminimisation #mortgagebroker

Just remember we got this, together we can overcome anything, even a nasty flu plague

Just remember we got this, together we can overcome anything, even a nasty flu plague

Borrowing Capacity

Borrowing with a buffer may be the only risk minimisation action you can put in place.

Essentially, this means that if all goes wrong, make sure you have either equity or savings that you can use to cover the additional costs so you don’t have to sell the property at a Fire Sale Price that’s unacceptable to you.

This allows you to buy time.

If you’re using equity from your home to buy an investment property, and you need $100,000 to cover that $400,000 property, and $80,000 for the 20% deposit and stamp duty and legal fees of $20, may consider tapping into the equity with a buffer.

So instead of borrowing the hundred thousand dollars, you borrow $120,000 giving you a $20,000 buffer in case you lose your job or you can’t rent the property out or your renovation goes over time or budget or is delayed…

Borrowing with a buffer allows you to have some extra time and it’s something you might want to consider.

Make a time to talk with one of our experts https://investorschoice.com.au/bookacall

#borrowingcapacity #setit #firsthome #propertyinvestment #mortgagebroker #realestate

In and out, in and out, think calm, think happy thoughts, you got this

In and out, in and out, think calm, think happy thoughts, you got this

How to set realistic goals? The question about goals and bringing it back to the now is really important. And the fact that a lot of people overestimate what their desired income is, or what they wan…

How to set realistic goals?

The question about goals and bringing it back to the now is really important. And the fact that a lot of people overestimate what their desired income is, or what they want, and what they can really live off.

Going through and looking at what you really need to live off might be an exercise as well. So, there’s one thing about saying ‘is this is this possible?’, and it’s another thing saying ‘well, in actual fact, maybe I can do better with the capital growth, I’m really going to target a higher growth area”!

So, you can then see very quickly, it makes such a big difference just by having over those 15 years, just that little 3% per year difference in growth.

Find out how many properties you need to know checking out our free online portfolio calculator https://investorschoice.com.au/portfolio-calculator