It takes time to sell a property, and it can take many months before the sale to come through, which means that you will have to wait before you can see financial rewards or access sale proceeds. There is no quick way to sell your property if something goes unexpectedly wrong.
In the event of when or if your property is untenanted, you will need to cover the full mortgage repayment from your own finances. It’s a good idea to also factor in any repairs or maintenance that you may be required to pay from your own funds.
Unfortunately, not everyone is as responsible with your property as you are, and the wrong tenant can damage your investment, refuse to pay rent and refuse to leave when asked. Disputes can sometimes take months to resolve.
We offer an obligation free quote on landlord insurance. Please discuss our tenant insurance options with one of our First Choice Mortgage Brokers.
Rising Interest Rates
If you have selected a variable rate for your investment loan, there is always a risk that your mortgage repayments can increase. Which can cause financial stress if you have not factored the rate rise into your finances. Interest rate rises can also affect the liquidity of your investment by extending the property sale periods.
In addition to the standard costs such as rates, strata, or home insurances are the ongoing maintenance costs associated with the new property – the age of the property’s age will have a bearing on how much it will cost you in ongoing maintenance.
Having all of your eggs in the one basket, so to speak, can have significant effects on you if your investment property in a certain geographical area decreases in value.
Capital gains tax & other costs
You may be charged capital gains tax when you sell the investment property. Other costs which are incurred when you sell the property, i.e. real estate selling costs, need to be taken into consideration.
Please contact First Choice Mortgage Brokers on 1800 111 455 to speak to a finance specialist for more information on investing in property.