Step-by-step guide to buying an investment property
When preparing to buy an investment property it’s important to get the financial foundations right first, including working out how much you can spend, so you don’t end up over-committing to a property that puts pressure on your budget.
These five steps can help you get your foot on the investment property ladder.
Step 1: Get a deposit and work out how much you can borrow
Where are you getting the deposit for your potential investment property purchase? Do you have savings in cash, or will you use equity in your existing home?
Equity is the difference between the current value of your property and the amount you owe on your home loan. Most lenders will let you access up to 80% of your property value (this can vary between…
