How to make your investment properties profitable?

How to make your investment properties profitable?

Getting the costs right…from the start

You’re ready to think about getting an investment property. So what’s the first step? How much can you borrow? You jump straight onto one of the bank’s websites and find a Loan Repayment Calculator, which will tell you how much you can borrow and what the repayments will be.

What these repayment calculators don’t tell you is that you need to factor in all the startup costs as well. If you don’t know what your costs are, you’ll end up borrowing more money, or having to pay more fees – like Lenders Mortgage Insurance, if you don’t have the initial 20% deposit.

What startup costs should you consider?

As property experts and strategists, there are around 20 startup costs we analyse for our clients to make sure they are not out of pocket. You may have thought of some of these, but probably not all. That’s why so many people end up borrowing more money or paying more fees than they should.

Here are the costs we look for:

Government fees:

– Stamp duty

– Mortgage registration fees

– Transfer fees

Bank fees:

– Loan application fees

– Valuation fees

– Bank solicitor fees

– Bank disbursement fees

– Lender’s Mortgage Insurance

Buyer’s conveyancing fees:

– Conveyancing

– Outstanding rates

– Outstanding water

– Outstanding strata fees

Property fees:

– Pest and building inspection reports

– Building and Contents Insurance

– Moving expenses

– Investment property fees

– Surveyor’s report

– Landlord Protection Insurance

– Real Estate management fees

We recommend using the above ‘buying calculator checklist’ and useful calculators to make sure all the costs are known before borrowing – and include this in your investment property analysis.

We help Australians achieve financial security through strategic property investment.

Contact Mirren today (02) 8814 5275 for your complimentary no-obligation consultation