Looking to buy an investment property - and have a life? Keep reading. You'll find everything right here to help you make more informed investment decisions from start to finish. Everything from the benefits of investment property and what's involved, to real estate 'watch-outs', tips on auctions and how to apply for a loan. If there's anything else we can do, just ask.
There are a number of compelling reasons to invest in property. Your guide to investing in property goes through the advantages. Once you have made the decision to purchase an investment property the next big decision is where to buy? We have put together a tips for buying section that will provide you with tips for buying a property, inspections that should take place and tips for auctions.
Aside from some legal differences, the process for buying an investment property is much the same as buying your own home.
*All applications for credit are subject to ING DIRECT credit approval criteria.
Here's a list of the sorts of things you need to provide. To see exactly what's required for the different loans use our application checklist.
"What do I need to tell you in the application form?"
"What ID do I need?"
You need to choose two documents from the below list, at least one from the A list. A referee then needs to certify the documents and verify your identity.
List of referees include:
"What about fees?"
We need details of the account you'll use to pay the valuation fees
"Anything else?"
Loan statement for the past six months
"What about salary information?"
"What if I'm self-employed or run a business"
If you are a sole trader you'll need:
If you run a business you'll need
"How about my Solicitor/conveyancer details?"
We need details of anyone acting on your behalf
Here are some costs that are often forgotten (and been known to cause a few sleepless nights). Now you know, you can budget for them.
Stamp duty is the state government tax on mortgage documents and the property. The laws and amounts vary from state to state. For more details or to work out stamp duty costs in your state, visit the relevant websites below, or use our stamp duty calculator.
Conveyancing is the legal process of transferring ownership of a property from one person to another. You can use a conveyancer or solicitor to do this. The main difference is a solicitor can give you legal advice, while conveyancers are generally cheaper then solictors. You need to budget for a title search to verify ownership and type of property.
When you borrow more than 80% of the property value you need lenders mortgage insurance. Lenders mortgage insurance covers us if you default or do noy repay your loan, i.e. it's insurance for the lender, not the borrower.
As soon as the contracts are exchanged you need to organise building insurance. If you're an owner occupier, you might want to consider contents insurance as well.
Here are just some of the costs you need to include (it's a great time to have a garage sale and save on some of the moving costs!):
Before you buy make sure you organise a strata search and pest inspection. It may cost a little, but if you find problems it can save you money in the long run. Check whether your solicitor can arrange these inspections for you.
Have a question or ready to apply? Arrange for a Mortgage Specialist to call at a time that suits you.
SMS 'home loan' to 133 464 and a Mortgage Specialist will call you back. Standard SMS rates apply. Not available on Vodafone or 3 networks.