When is the best time to buy an investment property? That depends mostly on one thing – cash flow. This will determine if now is the right time for you to buy an investment property.
Before you think about the when, it’s also wise to think about the why. Why do you want to buy an investment property? Interest rates are at historical lows right now but where will they be in two years, five years, twenty years? Are you considering taking advantage of a short-term change for long term gain? At Rising Tide Financial Services, our planners will work with you to understand your position and help you determine the why and whether then the when is now or later.
If you are planning an early retirement, buying an investment property might provide you with extra income to enjoy your retirement.
If you are taking advantage of a financial windfall or a change in your income, talk to us to see if now is the right time for you.
Do you have enough equity in your current property and can you manage the cash flow for extra monthly payments? We can look at how much equity you have or how much cash you need to sustain the investment mortgage over the longer term to make the investment viable.
It’s also important to understand the market. You generally don’t lose or make money until you sell and it important not to have to sell a property under duress. Are you set up if your circumstances change, an extra stream of income is taken away, something happens to the investment requiring extra money, or other similar changes happen?
Our Rising Tide Financial Services team have a wealth of experience and can ask you the right questions – around where you are wanting to buy and what you can realistically afford, address your current equity and understand your cash flow, help you to pick the right type of mortgage to suit your circumstances and take a long term view of your financial position to assess and potentially mitigate any risks.
We can advise on negative gearing and of this can work for you as well as understanding the market dynamics. Think of us as a guide, helping you to map a path to your financial freedom and wellbeing. Knowing exactly what you are getting in to can be the difference in successful investment or not.
We strongly recommend you seek out financial advice from a trusted and qualified financial professional who will be able to devise an investment strategy tailored to your unique needs so that you can feel confident about making investment decisions.