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ISCOVER
Staff Reporter
A majority of mortgage brokers believe having the right budget is key to successful property investing.
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According to a recent Loan Market survey of its brokers, 47 per cent said having the right budget was the best piece of advice they could give young property investors.
Loan Market spokesperson Paul Smith said that setting up a budget that considered cash flows, expenses, fees and maintenance would lead to easier and more educated decisions when it came to picking the right investment property.
“The enquiries we are seeing from Gen-Y property investors this year is nearly double that of the same time periods in 2010 and 2011. Property investment attracts a much wider demographic than in the past,” Mr Smith said.
The survey also revealed that choosing the right suburb was more important than deciding on the type of property to invest in or choosing the right investment loan product.
“The location and type of property an investor chooses can bring in additional income or different types of expenses. If you apply these factors to a well constructed budget, you’re going to be able to make better investment decisions,” he said.
“Tight rental markets in all capital cities and the ability to fix your interest rate at a historically low rate are two of the biggest factors making property investment so popular right now and it’s likely a trend that going to continue.”
