Saving up for a deposit on an investment property is much like saving for a car, holiday, to buy shares etc. Deciding to buy an investment property is, for most people simply a matter of priorities.

Most people with a full-time job can afford an investment property in Queensland, with many suburbs around Brisbane and the Gold Coast still at the lower end of the market cost wise, unlike Sydney where most people are priced out of the market.

But with any investment, there's always a few questions that you need to ask yourself:

• What type of investment property do you want, one for the best rental returns, or one that will increase the most in value in the coming years.
• Do you want a property to sit on or a renovation project?
• Do you want to rent out the property or live it in yourself?
• Do you want an investment house, townhouse or apartment?
• What payments can you cover in the worst case situation, such as no tenants or higher interest rates?

These questions are essential to creating the right investment strategy for your goals. But let's dig a little deeper. Here's a list of the expenses you need to be aware of if you decide to become a property investor:

Understanding your budget

You might have already made a profit on another investment property, or this may be your first, either way, understanding your budget is the first step. You will need to cater for the normal expenses of buying a property, such as stamp duty, bank fees and maybe mortgage lenders insurance pending on your deposit.

If you are renting your Brisbane or Gold Coast property, you'll need to find out what rental yield the property can expect, and what type of tenants the area or quality of house will attract. The team at Cultivate Property Investments can help you with all of this.

Understanding your ongoing expenses

With any investment property, there are expenses including maintenance, insurances, rates and water fees, which your tenants might pay for or the body corporate if it applies.

Either way, you'll need to work out your ongoing expenses after tenant rent to work out your total expenses, and take into account the property being vacant, can you cover the costs? You can apply for landlord's insurance to cover unforeseen vacancies, but you will need to check your applicable first.

Looking at your loan from the bank's perspective

Once you've concluded your investment strategy and you can know you comfortably afford your expenses, you'll then have to apply for a loan, and that's when the bank decides if you can afford an investment property.

At Cultivate Property Investments we’ve built solid relationships with leading mortgage brokers that can provide you with the best rates in the market. Please give us a call on 0431 392 115 if you have any questions regarding finance.

Contact Cultivate Property Investments

A great property investment begins with a great property, and the team at Cultivate Property Investments are always searching for and offering the best apartments and homes in Brisbane and the Gold Coast for new, and highly experienced investors.

If you would like to learn more, please just get in touch with the Cultivate Property Investment team on 0431 392 115 or here: www.cultivatepropertyinvestments.com.au/contact