The PPS Blog
Answering How Much to Get Started
By Jeff Banks
Welcome to Property Portfolio Solutions, your trusted partner in property investment. Here, we will explore the question of how much you need to get started in property investment and explain how our team of experts can guide you through the answer to this question.
The amount of money you need to get started in property investment depends on several factors, including the type of property you are interested in, the location, and your financial situation. In general, you will need a deposit to secure the property, as well as funds to cover any associated costs, such as stamp duty, legal fees, and property inspections. We like, as a rule of thumb, suggest usable equity or savings of at least around 20% of the target property as a good indicator where you are considering leverage (borrowing money) in your strategy.
If you are borrowing money to purchase the property, you will also need to consider the cost of Lenders Mortgage Insurance (LMI), which can add significantly to the overall cost of the investment. LMI is an insurance premium charged by lenders to protect them in case you default on your loan. The cost of LMI varies depending on the size of your deposit and the amount you are borrowing, but can be several thousand dollars. Keeping the Loan to Valuation Ratio (LVR) at 80% or less tends to negate LMI.
At Property Portfolio Solutions, we understand that not everyone has the resources to invest in property outright. That’s why we can help you develop a plan to save and invest over time, or consider options such as joining with others to invest collectively.
We can also provide guidance on financing options to help you get started. We have established relationships with mortgage brokers with a range of lenders and can help you secure competitive financing options to suit your needs. Our team of experts can guide you through the process of understanding the costs involved, including the relationship of LVR to LMI, and help you identify the right financing options to fit your budget and investment goals.
In addition to our financing services, we can also provide ongoing support to help you maximise your investment returns. This includes regular property assessments to ensure your investment is performing at its best, and advice on when to sell or reinvest to achieve the best returns.
The amount of money you need to get started in property investment varies depending on several factors, including the type of property and location, as well as your financial situation. At Property Portfolio Solutions, we understand that investing in property can be a significant financial commitment, and we are uniquely placed to guide you through the decision-making process and help you identify the right investment strategy to suit your needs. Contact us today
to learn more about how we can assist you in building a successful property portfolio.
Our catchcry is “Your legacy is Our inspiration” and our approach based on what inspires you, will make your legacy seem so much easier to achieve. We are easily contacted by going to our website www.propertyportfoliosolutions.com.au where the start or even the continuation of your property portfolio is made simple.
