Many investors own only one property. There may be quite a few reasons for this but one of those may be the likelihood that a lot of people miss the signs that tell them it’s time to buy a second investment property and grow their wealth. Having two investment properties means you also have twice the chance to build your wealth!
To help ensure that you won’t miss a great opportunity, we have listed down for you five signs that you are ready to go and find that second investment.
You already have considerable equity in your first property. If you have bought your first investment just recently and you’re still coming to terms with how things work, it’s not the time for you to rush into buying another. However, if you have already been building equity for two to three years now, you could be ready. With the help of a great mortgage broker, you can use that equity for deposit so you can purchase your second property and increase your income.
You are now earning a higher income and have substantial savings. Investing in a property can be risky – there’s no doubt about that. But if you have enough money to ensure that you can weather any possible challenge that may come your way, then you have better chances of coming out on top! So if you have been saving for a while now or your boss finally said yes to that raise, then you could be ready for that second investment.
Your first investment is a big success. Investing requires knowledge, skill, and of course, hard work for it to be successful. If your first investment is proving to be a success and you are confident that you completely understand what is required of you to be ready to invest once more, then it’s a good time to consider that second property.
You are nearing your retirement. The main goal of investing in properties is to build wealth and one of the reasons you want to build wealth is to be able to have a comfortable retirement. If you are nearing retirement, then it’s an excellent time to set up your investments – in fact, the earlier, the better.
Mortgage rates are low. If you have decided that now is the time for you to take the next step, then you should consider the cost of borrowing. Also make sure that if rates were to rise, you could easily take care of paying the extra interest.
So do you think you’re ready to make your next move on the property market? If so, call Tammy Samuels and find out how she can help you find the perfect property for you.