The traditional concept of purchasing a house to live in is a tried and true method of basic property investment, however there may be a better way. It is in fact quite possible to improve your financial position, by not living in the investment property that you have purchased. A different strata of property ownership is when you live in a rental property and rent out the actual property that you own.
To give you an example of how we would consult you, consider the following assessment with the underlying values of:
Under this scenario, we would compare how much you would pay in mortgage costs when you live in your investment property and when you do not. The results indicate that you would save $469 per week on interest costs when you do not live in your investment, but rather live in a separate rental property. The savings are derived from the rental income you would receive if you did not live in your newly bought house or unit. This is clearly a huge difference and would allow you to split the savings between paying your own rent and personal expenses.
Under this scenario you would not only be able to save money on your loan repayments, but you would also have the potential to engage in a different mortgage loan altogether. Amortising loans allow you to pay off some of the total value of your loan each year, which reduces future interest payments. By renting out your investment property you could use the savings to pay off the underlying value on your loan. This would in turn save you more in interest costs in the long run.
The preceding example is just one of many different types of investment strategies which we could introduce you to. Maximise the potential of your property ownership capabilities by letting us show you all of the best techniques for real estate investment.
For expert property ownership advice in and around Hope Island in the Gold Coast, contact Astute Investments today on 07 5530 8407.