Six things need to weight up before purchase the investment property

Have you ever been thinking to purchase the investment property? And how do you feel like about it? Easy or Hard? It could be easy as long as you pay attention to the critical things and factors before you make the decision. There are six things you may need to weight up before you get into the market.

1. Motivation - A quality property could be an excellent long term asset that can help you achieve important personal goals like building personal wealth or saving for retirement. Thinking carefully about what your goals are and will a rental property help you achieve them?
2. Long term outlook - There are many costs involved in buying and selling an investment property aside from the weekly mortgage payment. These include stamp duty, legal fees and agent’s commission. All of this can add tens of thousands of dollars to your expenses and it can take time to recoup through capital growth.
3. Comfortable on an investment loan - While investment loans often come with higher interest at least it can be claimed on tax. So be careful and ensure to take into account future interest rate rises which you may need to kick in for.
4. Gap between lease vacancy - Most rental properties experience periods of vacancy from time to time. Be sure your budget can cover these no-rent periods.
5. Maintenance and repairs cost – Thinking to have enough cash on hand to pay for when things go wrong. It will be worth having a slush fund of cash to cover these expenses, or at least a back-up source of funds that you can draw on in an emergency.
6. Don’t be blindsided by tax perks - Negative gearing and other tax concessions and deductions sound great, but don’t let his be the only reason you are investing.

Source: Realestate.com.au/news