If you are planning about buying investment property, there are several factors related to the cost that you should keep in mind. Here are a couple of things that you must take under your notice:

• Consider the deposit amount

Well, you should count on the lenders mortgage fees, or check the loan to value ratio before calculating the deposit amount for investing in a property. A wise decision will be to search around, and compare the deals of various properties before you can arrive upon a decision.

• Check the EMI for your home loan

Apart from just the principal amount that you are borrowing from the bank, there are multiple other amounts that are going to be levied on your property. Note the legal fees, the valuation fees, and the application expenses that you are going to be charged with! If in case you are having a doubt, do not at all hesitate to talk to your banker and calculate the recurring deposits that you will have to make on a monthly or yearly basis.

• Additional expenses

Well, the purchase expenses and other fees such as the stamp duty, and registration costs alongwith other expenses vary from one state to another. The same is applicable on the demand of the property in a particular location. However, the best rental yield in Australia comes mostly from southern and western Australia, Queensland, Victoria among many others. Before you handover the property to someone, take a note that all the documents are in place, and make sure that it is well renovated and looks aesthetically appealing. These are some of the essential things to raise the price of your investment property.

• Insurance fees

Well, do not skip checking the insurance fees of the property to protect it against fire, storm or any other natural calamities. This isn’t an easy job as it depends on the location of the property, the construction materials being used, and different other variables. In case you are going to give it on rent, you may even go for the landlord insurance which will cover the repair fees, or damages.

Author resource:-

Rick Lopez advises people about real estate, property investment, property management and affordable housing schemes.