I have lately had clients wanting to take advantage of the rising Brisbane residential property market, but they are hesitant in case they invest in property then lose their job.
Should there only be a slight chance of losing your job, it is folly to miss the opportunity of building a residential property portfolio in this buyers’ market.
Each individual client has different aims and financial ability, so I organise their lending accordingly, and in all such situations, create a financial buffer or “shock absorber”.
This can be as simple as making an extra repayment bi monthly i.e. in one year the client would have created a six-month “shock absorber”.
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Another method, if using equity, is to borrow say an extra $30 and deposit this in an offset savings account. This would cover 12 months unemployment on a $500k loan. The borrowing costs are nil as it is offset against the loan account.
Do not let the possibility of job loss stop you from investing in property, saving tax and creating wealth.
On the Property Clock, Sydney & Melbourne are at 12.05, whilst Brisbane is at 6.35!
Interested in enquiring about investing in property and would like to know ‘how it works’? Please contact our office to schedule a free, no obligation consultation and find out if our service is suitable to your needs.
Steve Taylor
DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the subject being discussed.