Have you been looking into the idea of becoming a landlord – but then 2020 happened, and all of your plans went out the window?
It’s true that 2020 has delivered a number of challenges to property owners, particularly those investors who had non-paying tenants who they legally weren’t allowed to evict.
The moratorium on evictions has now ended, and balance is not just returning to rental markets and in many cases, rental markets are booming.
That’s just one reason why this could be a great year for you to get a well-priced investment that helps you build long-term wealth and financial security.
But it’s not the only reason; there are plenty of other factors that mean 2021 is shaping up to be an attractive year to purchase an investment property, and it includes:
The fact that investment loans have never been cheaper.
We are getting mortgage deals for our clients that are the most competitive that we ever seen, and we have been in the finance industry for over three decades.
Landlords who were paying over 4% for their investment home loans this time last year, may now be eligible to apply for a residential mortgage as low as 1.99%. Not sure what’s available or how munch you could save? Get in touch with our friendly team for an obligation-free appraisal,
The fact that now is the ideal time to negotiate a bargain.
Did you know that the government is estimating up to 500,000 jobs will be lost, once the JobKeeper and JobSeeker programs are rolled back in March?
When this happens, it’s possible that mortgage defaults will increase for everyday mortgage holders. It may also be the case that investors who are struggling to manage their investments or their businesses, may offload their properties.
This puts you in a prime position to negotiate a good price on the investment property you have your eye on.
The fact that you can “rent-vest” to access grants and incentives.
First-time buyers can access a number of government incentives that are not available to investors.
But that doesn’t mean they’re totally inaccessible. If you’re a first homebuyer, then you may be able to use a reinvesting strategy that allows you to leverage these grants and schemes to buy a home.
You can live in for 12 months, to satisfy the rules of each program and incentive, then rent it out as an investment, while you live somewhere cheaper. You may be able to access tens of thousands of dollars worth of first homebuyer grants, incentives and discounts this way.
The fact that you may be able to borrow more than you thought.
With record-low interest rates in the market, which look like they’re here to stay for at least the next few years, right now it is the most affordable it’s ever been to get a loan and you may be able to borrow more money from banks than you were eligible for in the past.
This time last year, your borrowing power may have been $600,000. Now with interest rates so much lower, it could have jumped to $700,000.
You don’t know unless you find out!
So, for those of you who can see the potential financial rewards of investing in property in 2021, get in touch today. We can help you assess your borrowing power and give you an understanding of how much a bank or lender might be willing to lend to you.
If you are not sure that you’ll qualify for a loan for an investment property, we can review your situation and give you pointers about changes you could make, such as consolidating debts, or rearranging your credit cards, to improve your financial position.
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.