Loan Market

6 Do the math before you take out an investment loan. Plan the right way. Calculating rental yield When you're considering investing in property, “rental yield” (how much cash your property produces each year divided by the property value) is a term you have probably begun to notice popping up in conversations. Start by finding out how much your property is expected to bring in from rental income, compared to how much you're paying for the property. What is my borrowing capacity? Your borrowing power will give you a good idea of how much you can borrow to purchase a property and will help you narrow down the properties you’re interested in. We can help you find this out, punch in your income, expenses and a few other details, and you'll soon have an idea of your borrowing power. How much stamp duty will I pay? Don’t forget about stamp duty. It varies from state to state, so it can be hard to know exactly how much money to set aside. Select your state, answer a few questions about your property use (an investment) and enter the property value and loan amounts. Then you’ll see the government fees you’re up for (including stamp duty). Setting up a budget that considers cash flows, expenses, fees and maintenance will help you feel in control of your investment property. A good place to start running some numbers is our website. We have 16 different calculators to help you see where you stand. Check them out at loanmarket.com.au/calculators