Buying Property For Investment In This Volatile Economic Condition
With the property market being considered as the most low-risk investment portfolio, many are buying properties for investment purposes. But is buying a property in this high time of uncertainty a smart move?
Although buying a property for investment is gaining popularity over the past years, homebuyers have grown wary of its prospect as soon as the effects of the pandemic hit across all facets of the economy.
Resilient property market
But despite the evident impact that the massive lockdown had on almost all industries, the property market remained relatively resilient.
In fact, RBA report confirmed that the property market outlook remained promising despite the things that happened in the past months.
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The impact of the pandemic on the housing industry was significantly mitigated thanks to government effort in a form of fiscal stimulus package that augmented the cash that can be lent to Australian borrowers.
Home loans vs investment home loans
Investment home loans are designed for people looking at purchasing a property for investment purposes but couldn’t afford one without getting a loan.
Firstly is on the LVR, investment home loans usually require much lower LVR--meaning higher deposit requirements.
Secondly, interest rates for investment home loans may be relatively higher than that of a regular home loan.
Buying a house for investment
If you have decided to buy a property for investment purposes though, you have to do it the right way: you don’t want to just throw out your hard-earned savings just like that, do you?
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Just like any other types of mortgage, getting a property for investment purposes is a long term commitment and as such, it requires a lot of effort and research.
Industry figures show that with the recent immigation ban and massive lockdowns imposed across the country, nearly 80,000 properties will remain unoccupied in the next 12 to 18 months.
Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today.!