Can I afford an investment property?
If you're wondering if you can afford an investment property, here are a couple of things that you can start thinking about:
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Firstly, you will need a deposit of at least 5% of the property's value with P&I repayments, and if you want to avoid Lender's Mortgage Insurance (LMI) you will need a deposit of at least 20%.
- Another thing to remember is that you might not always have a tenant in your investment property, so you may want to have enough saved up to cover your repayments when you don't have a tenant.
- Don't forget to budget in any renovations, stamp duty, and other fees and costs when calculating whether you can afford a property.