Buying an Investment Property vs Buying a Home
It is always easier to get a mortgage for a residential property than for a piece of real estate that you purely plan to use for commercial purpose. The reason is obvious.
Banks and lending agencies find it riskier to sanction a loan for investment property as you won’t be able to guarantee them a good return on your investments. A high interest rate is the price you’ll have to pay when you seek a property loan for commercial ends. You’ll also be required to adhere to harsher guidelines. How a Mortgage Broker can Help you Find the Right Loan Service
The issues with renters
If you’re planning on letting out a section of your home to renter(s) to recoup a part of your monthly EMI, then you’ll have to factor in the aspect that there might be months when the to-let portion will be empty. You can never be sure as to which renter will stay for a long term and which leaseholder will turn out to be a fair weather friend.
When you’re considering putting up renters in your investment structure, you’ll inevitably need to hire mortgage broker in Melbourne.
The estate manager will find new renters when old ones leave, manage lease contracts, and deal with problematic tenants. But be prepared to have an extended waiting period before the returns keep pouring in.
Before you seriously start looking for a commercial real estate make yourself of all the additional expenses you’ll have to pay apart from the purchase price. Apart from paying taxes, insurance premiums, and repair cost for your principal residence, you’ll also have to have these accruals for your investment property. If you want to have a good investment.
You’ll also have to make a down payment to the management company plus a fixed lump sum that’ll be a proportion of your rental collections.
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