FHA Investment Property Purchase
FHA Investment Property Purchase Requirements
What type of investment property should you buy? Should you look buy in state or in a potential retirement destination out of state?
Investment properties, also known as non-owner occupied properties can
be very profitable for casual homeowners and real estate investors alike
In most capital cities of Australia, apart from Melbourne and Sydney, there is still a plentiful supply of properties under $500,000 for sale.
Whether you’re looking to buy a condominium, a townhouse or a single-family home, there are a number of factors to consider that can have a significant effect on expenses and returns on your investment.
It is especially important that first-time investors take a conservative approach to their property investment purchase and focus on buying an investment property for under $500,000.
Too many first-time investors over-expose themselves financially by purchasing an expensive investment property which can limit their ability to buy multiple properties. This is particularly the case if they purchase an expensive property in the wrong location, potentially resulting in a financial nightmare.
Spend time researching all aspects of the property market before even looking for an investment property. Issues, such as negative or positive gearing, rental returns and depreciation have to be considered by a first-time property investor;
Take a broad approach to buying an investment property. Most first-time property investors buy a property in their local neighbourhood because they are familiar with the area. By taking a narrow approach to the location of the investment property, first-time investors severely limit their options;
Try to target suburbs in lower-priced areas which have a higher number of properties for sale;
When you have selected a suburb, don't make an emotional decision when choosing a specific home. Most first-time investors purchase a property they would like to live in. It is important to remember that the investment property must appeal to a tenant who will be paying the rent;
Check out any planned infrastructure changes for an area you are interested in buying. For example, an upgrade
of a local shopping centre or plans for a new railway station can have a major impact on local property values;
Make sure that there are tenants prepared to rent your property. Rental income is a key factor in serving the loan so if you cannot find a tenant, you will have problems keeping the investment property over the longer term; and
Check your finances before you consider buying an investment property. If you have pre-approval finance, it will allow you to move more quickly to secure the right investment property.
will forward your application to one, single
FHA Specialist who will
contact you to discuss the best FHA
Programs and the lowest rates available at
this time. We do not re-sell, distribute, disseminate
your application information to telemarketers, multiple
lenders, or 3rd party marketing firms.