So, you are expanding your property portfolio from “homeowner” to “landlord”. That is exciting and is a sound investment ‒ if done correctly. Working with a top-notch estate agent and home finance mortgage provider is the first step. We have also put together helpful tips so you can start on an even stronger footing!
Landlord Home Finance Tip #1
Make sure you are strategic with your finances and not making emotional financial decisions. Know exactly what your budget limits are, and be aware that you have to put down a healthy deposit for an investment property of up to four units.
Landlord Home Finance Tip #2
Get the right support network around you ‒ we mean professional support. See them as your strategic partners and make sure they have specialist, relevant knowledge. As we mentioned above, work with a top-notch estate agent and home finance mortgage specialist, like Nowik Mortgage, but also bring a property lawyer, appraiser, technical building inspector, and an insurance specialist.
Landlord Home Finance Tip #3
One of the very early steps you need to do is scan the different markets for rent levels achieved in relation to different locations. If an area has burgeoning businesses, this will attract more people needing rentals, or perhaps you are targeting the student market near universities. Check out who your competition is too.
Landlord Home Finance Tip #4
Don’t rush into a mortgage. Discuss your options with our home finance mortgage specialists and give them time to shop around and negotiate on your behalf. They will share insights and tips that you could implement to ensure you get an excellent deal when the mortgage phase arrives.
Landlord Home Finance Tip #5
Make sure you have researched your insurance needs and the insurance deals available. Find out exactly when you need to activate the insurance and the steps required. You might not have rented out the property, but if, for example, storm damage occurs before you have activated the insurance, it will be a tough start to your investment journey.
Landlord Home Finance Tip #6
Unless you are a renting agent specialist with the knowledge on how to market property, assess tenants and draw up rental contracts, it is highly advisable to use a real estate rental manager. Tenants can be a challenging issue to handle as well as time-consuming, late with payments and possible issues with the neighbours. Do you want to micro-manage all of that? Probably not. Rather spend your time strategically researching your next investment property so you maximize your capital growth opportunities.
Chat to Nowik Mortgage ‒ your home finance mortgage professional ‒ as you think about investing in property so that your decisions are based on sound finance and property knowledge.