Making a Property Purchase
Before you go ahead and purchase your home:
- Save a deposit of approximately 20% - in doing so you wont need to pay mortgage insurance and you’ll have a buffer if circumstances change.
- Don’t underestimate the costs involved of purchasing property – depending on the value of the property, a 20% deposit could be $300,000 or more
- Set up an offset account tied to your loan account so that the balance reduces the amount owed on your loan
- Get a conveyancer to check and manage the paper work
- Understand what you’re buying and how you’re financing it. If you don’t understand it, don’t do it.
- Once you have purchased an investment property, have it professionally managed.
- When building a portfolio, consider diversifying by purchasing property inter-state. This will broaden your exposure and could have positive tax implications.