Investing in property can feel daunting, especially when you start crunching numbers and calculating the deposit required. Generally speaking, lenders in Australia ask for a deposit of at least 20% of the property’s purchase price. For a $500,000 property, we’re talking about a $100,000 deposit. However, there are a few strategies and options to lighten the load, which we’ve laid out below.
Practical Steps to Secure Your Investment
Loan-to-Value Ratio (LVR) Insight
The Loan-to-Value Ratio determines the percentage of the property’s value that can be borrowed. A higher deposit reduces the LVR, potentially saving you on Lenders Mortgage Insurance (LMI), which is applicable for deposits less than 20%. Aim to save that 20% as much as possible to keep costs low.
Government Grants and Schemes
Are you taking advantage of all available resources? Some Australian states offer grants or incentives for property investors. Research government schemes like the First Home Owner Grant, which could help alleviate some of the financial pressure, even for investment purposes.
Equity Utilisation
If you already own a property, you might be sitting on untapped potential. You can leverage existing home equity to fund your investment property deposit. It’s like having an ace up your sleeve, enabling you to enter the market sooner without saving up the full amount.
Partnering with Professionals
At Better Way 2 Build, we believe in taking the stress out of your property investment journey. Our bespoke services, tailored to your unique needs, connect you with the ideal builder and location. We manage everything from custom design with 3D walkthroughs to key handover and building inspections. Trust in our expertise can be the deciding factor in simplifying your financing process.
With years of experience in the property market, Better Way 2 Build offers more than just a cookie-cutter approach. Our comprehensive services ensure that you’re not alone in your investment journey. Contact us today for tailored advice specific to your situation, or to discover the full suite of services we offer at Better Way 2 Build. Your ideal investment property awaits!
