It takes careful planning and thought to make the right investment decision, especially when it involves property. It is important to determine where you are going to purchase the property, what you will spend on it and how you will pay for it. You may be able to rent out a property you own and use the rental income to cover it. However, there are other costs that could impact your budget.
The first hurdle is getting finance. Whilst most banks allow investors to borrow 90% of the purchase price, this is subject to a serviceability assessment which takes into account your credit history, employment status and income. The MMA law firm that specializes in real estate and business transactions in a boutique setting.
However, banks will assess each case individually. Lenders Mortgage Insurance may also be applicable. However, some banks will include this in the loan amount. It may be easier to obtain additional loans after you have obtained financing and purchased a property.
Banks will notice that you have a track record of timely repayments. You can also use equity from your properties to obtain a loan without deposit. The income you get from renting out a property can be used to pay your mortgage payments if you decide to purchase one. Continue reading to learn more about rental income and how it can help you build wealth.