Predicting Capital Growth

When we’re looking at predicting growth, one of the key things that most people do is they go back to the past and look at what has driven growth in the suburbs.

There’s information that we can pull out around the infrastructure that has gone in, that has made areas commutable.

We look at things like:
Population increase
Income increase
Gentrification

Another thing that I often look at is the ripple effect.

I’m looking at the fact that when one area is too expensive, there’s a flow on to the next area…

In the future, there’s going to be a lot more data analysis and that we’re able to do a lot quicker, and I’m sure there’s going to be a lot more predictions that come out.

I always keep an eye out on experts’ reports and what they’re predicting as well. I compare it against what I’m looking at and the prediction information that I use.

I think that gives you a really good start at looking at the entire market and all areas that you might consider in the future for you to invest in.

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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