Tip on buying your first investment property

A thought that comes to many people's minds is how they may potentially purchase their first investment. It may seem like a long and difficult journey but one you have established your first investment property will allow you to expand portfolio. To start out when entering the investment market, you need to understand your current financial situation to see if you qualify for a home loan with the bank. Should your current situation not be very good at saving money, you can think about speaking to a local financial planner or lending expert who can assist with increasing your pooled savings. Other ways you might want to do this is combining your partner's finances and join the two.

Once you speak to a lender and know you qualify a loan. Next steps would entail what your budget is and where you were looking at investing i.e. location and the type of property i.e. house or apartment. But who considering these factors an investor must think of two potential areas of return they wish to focus upon. When in comparison an apartment may potentially generate it's owner a higher return on rental yield and seem easier to attract tenants due to the more convenient locations. It can be seen that they have a lower level of potential capital growth in further years due to having limited development opportunities and potential to further enhance.

In contrast a house can be seen to limit the level of rental yield an investor can have though can be seen as also positive with the removal of expenses such as strata rates and the freedom of greater capital growth and more freedom on deciding how you wish to enhance your property due to you being the sole owner in contrast to apartments having multiple residents/owners. Through this it is demonstrated that investor need to balance what they want in a investment property and it is aligned with their financial budget and situation to see which property would suit them better.