A low doc loan can help you to ‘clean and jerk’ your way into an investment property, and set it up for tenancy in no time. In Olympic weightlifting, the clean and jerk technique involves an initial lift onto the shoulders (the clean) before a final push straight up into the air (the jerk). Applying this technique to an investment property isn’t as far fetched as you might think.
The ‘clean’ of buying investment property is when you buy a home, but that’s not the final step in getting the place ready for renters. That’s where the ‘jerk’ comes in – this involves all of the renovations and fixes that you need to make. The whole thing is a process that, unlike with training for Olympic weightlifting, doesn’t take four years.
Buying an investment property is a great way of securing your financial future, as you’ll have a constant stream of income as long as you’ve got tenants. Get onto it, and soon, with a low doc loan from Redrock.
Why are investment properties so popular?
According to an On Property report from April 2016, 7.9 per cent of Australians own an investment property. Many of these people own only one, with only 0.068 per cent owning six or more.
Buying investment properties is such a popular undertaking because of how much money it can bring in. Often, that’s just enough to cover mortgage repayments, sometimes it’s more. The gross rental yield in the country, as reported by the Global Property Guide, is 4.39 per cent. While the cash rate remains at a record low, and the financial situation around the world stabilises, lenders are more willing to pass on interest rate cuts.
When interest rates are low, it means that you don’t have to pay as much for your mortgage. The same goes for a low doc loan. If you buy a property, renovate it and make it a sparkling jewel in your investment portfolio, then you could be earning a lot more from it than you expected. This will be especially true if the Reserve Bank of Australia lowers the interest rate further.
While the Olympic weightlifting is on television, take some inspiration from the heroics of the athletes and clean and jerk your way into an investment property. It won’t take the years and years of training that the Olympic athletes put in, but the rewards could be just as satisfying.
Contact Redrock today to find out more.