education

Can you afford an Investment Property?

Investment Loans Made Simple...

Many people think that owning an investment property will cost them thousands of dollars upfront and hundreds per week. Well, we are here to help show you that just isn’t the case, in fact most of our clients have been astounded to find out that they could buy a property with no on-going deposit at all by accessing the equity in their existing home as the deposit. As far as on-going costs, well that’s even more surprising to most people, as it can be as little as $35 per week.

At TIPS Home Loans we specialise in educating everyday people in the process of purchasing an investment property, in conjunction with your accountant, financial advisor and the home loan provider of your choice. Together we will show you how much it will cost you to own your first and subsequent investment properties.

Buying an investment property is completely different to buying a home for you to live in, as there are a number of other people involved in the process of paying for an investment property.

With an investment property, the help will be in the form of a tenant and the tax department.

Let me explain...

Let’s say you buy a property for $350,000 and use the equity in your current home to secure the purchase, which means you will be borrowing the full amount of $350,000.

The loan: $350,000 at approximately 5.3% interest, will only cost you roughly $357 per week

The costs: Council rates, water rates and property related expenses of approximately $60 per week

Property Management: This includes letting, Landlord Insurance and administration fees of approximately $47 per week

The tenant: They will pay you approximately $330 per week

The tax department: They will refund you approximately $101 per week

Therefore, income generated = rent $330 + Tax $101 = $431 / Expenses out = interest $357 + costs $107 = $468

Total out-of-pocket expense is $33 per week

(Please note this is to be used as a guide only and each person will need to be calculated differently based on the income and services required to manage the property. Other fees and charges are required and would be discussed at length once you are ready to go. There are also possible grants that may be able assist you. Rates may vary as well as costs of owning a property. Lending criteria, terms and conditions apply)

Looks great doesn’t it?

Well, each person will have a slightly different outcome which we will be able to discuss with you once you decide on an option that best suits your needs. Once you understand the process, we will then ask our sister company Total Investment Property Solutions (TIPS) to help you find that perfect investment property. They will sit down and discuss your needs and most importantly they will not push you into buying a property until you are ready. In fact, it is their policy to not offer any property on the initial free, no-obligation meeting, so you can sit back and relax until you are ready.

They will also invite you to talk to any relevant parties to discuss your personal details, to ensure that they are also happy for you to proceed with purchasing an investment property. These people could include professionals such as your accountant, financial planner and even friends and family. Once you are really comfortable with the thought of looking further into buying an investment property, then they will show you a selection of house and land packages to be built from a broad range of some of Adelaide’s best builders. ALL properties they offer are within 40 kilometres of the CBD of Adelaide, and they will never offer you a property without giving you the opportunity to go and check out the areas and property yourself.

Unlike many other companies, they only work one-on-one with their clients, and don’t hold large seminars where you will be crammed into a room and listen to general information which may or may not suit your particular circumstances.

At TIPS they will help you every step of the way to ensure that they minimise the stress and maximise your potential return of purchasing an investment property.

Now here’s some great news; choose a house and land package from one of their associated builders and their sales service to you will be absolutely and unconditionally FREE. That’s right, not one cent. In fact, in most cases they will even reward you with up to $1,400 in contributions towards services with their investor bonus packs.

Please contact us to discuss which service you would like us to organise for you first.

 

 

Looks great doesn’t it?


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