Many people say they want to invest in property but no where near as many take action and become a real estate investor. Of course there are many reasons that people provide for not taking action – not just in property investing – but in anything that requires some effort. Lack of time, lack of knowledge and lack of money are the big three reasons, or excuses, that are offered.
People people perceive property investing to be only for the wealthy, but in reality many would be investors are in a position to buy now and they don’t even know it! The fact is that many people do not even have a good grasp of their current financial situation in terms of assets, income and expenditure and without this knowledge it is indeed difficult to assess readiness to invest in property.
So in order to help you overcome the ‘reason’ of lack of money, you really do need to take some time out and assess your current financial situation. Write out your current assets, your income and your expenses as a first step. Then armed with this knowledge you can assess if you have enough equity (ownership in an asset, such as your own home) or money available to form a deposit for your investment property purchase. Once you have all of your information together, as a preliminary step you can visit the website of any bank as most will offer an online calculators to help you determine your borrowing capacity.
Of course using online calculators will just provide a guide and you will need to confirm any outcomes with the actual bank, or better yet, go and see a mortgage broker and your accountant to confirm what is possible.
Knowing where you are financially is the first step and you may find that you are closer than you think purchasing your investment property.
