Dream, Plan & Set Goals.
Because you won't hit much if you don't know what you're aiming at

Make a Savings Plan
It is a good idea to begin to abide by the smart home-buyers budget provided in the 'What can you afford?' section.

Remove the costs that are not currently applicable to you and begin to make regular repayments into your savings account. This will not only aid your loan application but also increase your deposit, reducing the overall cost of purchasing the property whether it is your home or an investment property Perth. 

After you have completed your research on the type of property that you would like to buy, you will have a reasonable idea on the size of the deposit you will require. Tell your family and friends this target, and how long you expect it to take to reach your goal. Often sharing this with your friends and family increases determination and is a source of support should you require it.
Do not save what is left after spending, but spend what is left after saving

PPOR or Investment?

When setting goals often a key consideration is your future plans for the property itself. Even if you intend to initially live in the property (as your principal place of residence or PPOR), it is important to consider your long-term plans. For example, if you intend to live in the property until you are ready to start a family and then intend to rent the property out and move elsewhere, this is an important consideration when structuring your loan as it could potentially be an investment property Perth down the line. Your mortgage broker will be able to assist you here. If you're considering purchasing a property to rent out, its a good idea to engage a organised and experienced Property Manager.

Many taxation benefits may be utilised when purchasing an investment property Perth. If you are preparing to implement an investment strategy, a property accountant or property solicitor should be engaged to ensure you are adequately structured.

You may also be planning to purchase a property for investment purposes in the future. You may choose to continue to rent/lodge whilst investing in property, or you may initially purchase your PPOR then choose to invest. The pro's and con's to these strategies are as follows:

Buying your PPOR then Investing in Property

  Pro's
  • The security and freedom of owning your own property.  No rental inspections or risk of being asked to vacate the property after given notice.
  • You can make your PPOR your own space, free to make changes / improvements to decorate the property the way you'd like to.
Con's
  • You cannot claim any tax benefits whilst living in your own home
  • You have to pay the additional costs involved in home ownership including rates & repairs, without any tax deductions for doing so. This coupled with regular mortgage repayments can make home ownership costly.

Purchasing an Investment Property Prior to Obtaining your PPOR

Pro's
  • Cashflow is often enhanced as a result of renting. This results in being able to save a deposit faster and more effectively if you are planning to purchase in investment property Perth.
  • More flexible arrangements can be made to reduce your costs: couples moving in together to split costs, friends house sharing, or simply living with parents and paying a little board.
Con's
  • Insecurity of long-term tenancy. Owners may choose not to extend when your rental agreement comes to an end.
  • If you are in a shared living arrangement personality clashes may occur.
  • You are responsible for maintenance of the investment property Perth.
  • You are restricted in your freedom of personalising where you are living.
Although the above may begin to pose more questions than answers, it is good to ask yourself and/or your partner what your long-term strategy is when investing in property. Historically property investment has consistently returned good results, so getting on the property ladder is an important step. Having an idea of how high you want to climb that ladder is also an important consideration.

For expert advice on purchasing an investment property Perth or if you wish for someone to invest on your behalf, please contact one of our recommended specialists.

Investment Property Perth