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Purchasing an investment property for low income earners

Purchasing an investment property for low income earners

Roger was talking to his colleague-friend, Jane, about the idea of investing, what are the good options, where do good returns lay and so on.

Roger suggested Jane, “Why don’t you invest in a property? You should consider it given your interest in buying a home.”

At this Jane replied, “Investing in a property is for millionaires. It is not something I can afford. Look at my income, Roger!!”

This is where Jane lacks in knowledge and expertise. Of course without knowing what exactly investing in a property is like she should not take a plunge. But, she is wrong when she assumes that because she is not a high income earner, she cannot get an investment property.

Many people across Australia live under this misconception. Even if you have an average income you can buy a property. All you need is a careful planning and an expert advice, both of which you can get from a home loan broker. Here are some tips you can consider to turn your dream into a reality.

Zero in on a friendly loan options

It is evident that you will have to opt for loan. Initially, you will take time to gather the deposit and a loan can come in handy here. Some of the lenders might demand a higher deposit but fret not; you can find a friendly loan for your purpose. A good idea is to consider making it your home first and then may be converting it into an investment property. Once you have better financial status, it would all be fine. An expert will suggest you to have at least 10% of the property’s buying price ready with you for the deposit. This will increase the chances of your home loan being approved.

Demonstrate that you are a low risk borrower

Now the question that might arise in your mind is with such low income how do you exactly demonstrate that you are a low risk borrower. Prove that you have a good savings which will depict that you are good at managing your money. This will give you an advantage of making the lender believe in your borrowing capacity.

If you have credit cards, keep the limits as low as possible. Try to prove your stability by clearing off any other loans that you have let say of may be your car or any personal loan. It will increase your credibility.

Be smart with your investment

Being a low income earner, you have slightly more criteria to cater to and so while selecting an investment property you need to be tactical. For the starters, stay away from anything that can induce negative results. Whether you are looking for a long-term investment or a short-term, your property’s location will differ accordingly. Therefore, research the areas properly and keep the profits at the forefront.

See, it is not that difficult!! If you are thinking like Jane, then let go of your fears. Talk to our Mortgage brokers in Burwood, Melbourne and get clarity on the pros and cons. Opulent Finance’s home loan brokers have a good track record of assisting people of varied income bracket make the right decision and those clients are enjoying the fruits of their decisions. Let’s work out your dreams. We are just a call away.

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Siraj Ahmed
Siraj Ahmed
2020-11-18
Verified review
Excellent service. Got us a great loan option and also worked with the bank to get the loan approved during the heights of COVID.
Dhruv Satra
Dhruv Satra
2020-11-18
Verified review
Malaka Ekanayake
Malaka Ekanayake
2020-11-10
Verified review
We have had a very pleasant experience working with Opulent Finance. We did not have that much experience with house loans as we were first home buyers but working with Opulent  Finance team specially with Ishara, made that experience stress free one. She helped us secure an incredibly competitive interest rate and offered her guidance so we can take advantage of the future interest rate drop. Thank you Ishara, Dayan and team for your incredible support and we have no hesitation what so ever in recommending Opulent Finance for your financial needs
Uma Gunaratne
Uma Gunaratne
2020-11-04
Verified review
Ishara is highly knowledgeable and if you are a first home buyer and new to the intricacies of all that home loans entail, she will really take you under her wing and impart her knowledge and experience and treat you as one of her own. She is also extremely patient but will also be very truthful and upfront in situations which is honestly what you need. She did a very complicated loan for us, and was so incredible efficient and organised with all the paperwork that was required. Not only that, she helped us secure an incredibly competitive interest rate! Ishara has probably spent hours and hours explaining to me details and giving me really good guidance through this momentous period in life! During the cooling off period and settlement, she was constantly chasing up our loan and honestly took a personal interest in the outcome. Our solicitor was also very happy about working with Ishara as she was following the entire process, was always up to date and very easy to work with. Considering that our entire process happened during the covid-19 lock-down and work from home environment, we have nothing but good things to say about how professional Ishara was as she didn't let a single thing slip. We are so glad that we have both Ishara and Dayan in our corner. We will definitely be using them for all future financing needs. Thank you Ishara, Dayan and team!
Harsha Ill
Harsha Ill
2020-10-11
Verified review
Opulent Finance gave professional advice for my unique home loan requirement. They respond quickly with the proper information. The process was smooth and I felt comfortable to deal with the team. The team is friendly and professional to deal with. Highly recommended for any one looking for finance.
S P
S P
2020-09-22
Verified review
I have been dealing with Ishara at Opulent Finance for over 6 months now and she has been faultless. She has helped me secure a loan pre-approval in no time and assisted me with my property purchases. I could not recommend Ishara highly enough.
Afshin Koohestani
Afshin Koohestani
2020-09-22
Verified review
Good service and offers.
Janaka Kumara
Janaka Kumara
2020-08-22
Verified review
A big shout out to Dayan and his team for the seamless service provided during the refinancing process. Thoroughly professional team that pays attention to every detail and has been extremely transparent throughout the process. A team that always has the best interest of clients in mind and makes all efforts to provide the right advise and outcomes to the clients. Highly recommended!
Rakesh Mistry
Rakesh Mistry
2020-08-19
Verified review
They called me back with solution
Indra Jaya
Indra Jaya
2020-08-12
Verified review