Choosing to invest in property can be a positive step towards creating wealth for your future or your retirement.
The benefits include:
- Regular income: Renting out your investment property can generate a regular return, helping pay for the property.
- Capital growth: As the value of your property increases over time, so too your investment grows.
- Tax benefits: There may also be an opportunity for additional tax benefits. We recommend you speak to your accountant about this.
Is property investment right for you?
Of course, property investment isn’t right for everyone. Before making the decision to invest in property it’s important to get a solid grasp of your current financial situation.
We recommend you consider your:
- Existing assets: Do you already own your own home or have another property you could use as collateral?
- Liabilities: Are you burdened with a heavy mortgage or struggling to meet your current loan or credit card repayments?
- Life stage: Are you planning on retirement in the next few years, and is now a good time to be taking on additional debt?
The Australian Securities and Investment Commission have some great property investment advice to help you decide if property investment is the right move for you.
Finding a good property investment isn’t just about looking for a property for the right price; location is also a key factor.
Remember the key to a healthy return is ensuring your property is rented, so you’ll need to buy in an area with strong rental demand. Ask yourself:
- What are the current vacancy rates?
- Are there schools and shops nearby?
- What is the travel infrastructure like in the area?
- If you’re buying a unit, what are the strata and other fees involved?
Once you’ve found the right property, it’s time to choose the right loan. We know that choosing the right investment loan can be a challenge. That’s why at Australian Military Bank we’ve made it easy to compare our investment loans.
All our products are flexible and competitive and have a great range of features.
Protect your investment
You may decide to self manage the rental of your investment property or use a real estate agent. Real estate agents will take a fee (usually around 10% of the monthly rent) and in return will screen potential occupants, manage the admin and deal with any issues.
Whether you use an agent or not, we would highly recommend insuring your property. We have a range of insurance policies issued through our partnership with CGU*, including Landlord insurance, which helps reduce your vulnerability to a destructive tenant who may damage your property or fail to pay their rent.