It’s a common misconception that you need to be rich to invest in property. While it’s true that buying an investment property can be a great way to grow your wealth, you don’t need to have a lot of cash on hand to get started. In this article, we’ll take a look at some of the ways you can get into the investment property market even if you’re not swimming in money, including what home loan options you might want to consider!
If you don’t have the cash on hand to buy an investment property outright, there are investment home loan options available. Generally, lenders will require a minimum deposit of 20%, so you’ll need to do some saving before you can get started.
While 20% may seem like a lot for many people, it’s important to remember that investment loan criteria are slightly different from a traditional owner-occupied home loan as the needs of the borrower vary. This means you may still be able to qualify for an investment loan even if you don’t have a lot of money in the bank.
If you’re already a homeowner, or perhaps even an experienced property investor, you may be able to leverage the equity in your existing portfolio to give you the deposit you need for your next investment loan.
Between the loan jargon and the everchanging home loan market, it’s important to stay informed and have the right people in your corner. This means speaking to a mortgage broker who can find the right investment loan for you and guide you through the home loan application process.