Some Common Fears and “Why Not” not to buy an Investment Property

1. Too much risk
If you have purchased your own home you have already made a big property decision. If you happen to qualify for an investment property you are probably already heading in the right direction. We think the risk can sometimes be “what if” you DONT invest in something for your future? Which way would you prefer to be wrong in 10 years?

a) You took control your finance with some help, support, guidance and end up with an investment property or two as well as with your super giving you more choices later in life
OR
b) Do nothing and you hopefully own your home and have a bit of super to live off?

2. What if something goes wrong?
Things can go wrong. We are not promising they won’t, however by doing nothing and making no decisions when the opportunity is there for you would this not be worse? You cannot turn back time in a few years when the chance has gone and you may have passed up the opportunity to gain equity in an extra asset to help you in 10-15 years time.

3. What if I have a bad tenant
Aim to have a good property manager and listen to advice and recommendations from them. Ensure you have insurance and landlord protection, be open minded and compromise on rent to attract the best quality tenant. For example if you reduced your rent by $15 per week it only costs you $780 per annum. If you are the cheapest one available for similar properties in the same location you should attract more tenants therefore giving you more power on choice.

4. What if I can’t rent it?
Considering the rental vacancy rates are getting lower and lower and becoming harder for renters this risk should be minimal. As mentioned if you are open minded and reduce your rental below others on the market you should get more applicants to your property first. Also if your property is newer and in better condition you should also attract the better tenants.

5. What if I lose my job?
What if you lost your job now? How would you pay your bills and your mortgage? If you have an investment that is practically paying for itself, then in theory you should feel more secure knowing you have something else to fall back on. Some of the current WhiteStar Properties available have amazing returns based on today’s rates and rental returns.
“In Case” something happens should not prevent you from making decisions, just be aware of your concerns and discuss the plans and ways to overcome the issue.

6. My Partner doesn’t want to?
We don’t always agree with our partners, and they may have different fears for different reasons. For example one of the biggest is fear that the cash flow of the household may be affected, or there are repairs and maintenance that may need to be covered or any of the above fears mentioned. Organise an appointment with one of our expert property consultants so you can discuss concerns and fears. Again it is about taking control and using what opportunities arise when they arise.

7. I have super for my retirement
That’s great. As much super as you can have by retirement will be great. The issue is there is not a huge amount of control on super and it is supposed to help support you in retirement. Imagine having super and additional properties that can be sold to help with debts or cash flow. Or keep the property and the rental income may be an additional supplementary income. How many people are going to be in the position where their super has to pay out their own mortgage and they then need to rely on the pension?

8. Is Negative gearing still going to be around?
That is a question that has been raised for over 2 years. It hasn’t changed as yet. All the talk has been more focused on established properties. But again if you wait to find out then it may be too late. It has been said that any changes will only apply moving forward and won’t be retrospective to prior purchases. However until anything changes it is still the same. So this would indicate if you are serious about building wealth for your future don’t wait for rules to change or you may lose the benefits.

9. What if I can’t afford it or can’t get a loan?
We recommend that in most circumstances you do have your situation reviewed before making any final decisions. So learn more first with the team and then before making the commitment you have your financial situation checked properly by a qualified broker. We have experienced mortgage brokers who assist people every day with purchases for owner occupied or investment as well as refinances. They make it easy or you to understand the figures and options before you take any steps. You will be amazed at how little buying a whole property will costs you when the rent is so strong.

Chat to a WhiteStar Property Consultant today on 1300 652 842 or email us on info@whitestar.com.au