Buying Your Next Investment Property – How to Know If You’re Ready For Your Next Investment Properties

December 15th, 2023

“When should I purchase my next investment property?” is a question often asked in Empire 8 Property fields. The answer – you’re ready when the numbers say you are.

Market conditions, not strict timetables, should dictate new asset acquisitions. As such, Empire 8 Property recommends checking in with your finance broker every 8-12 months to assess your portfolio’s current equity position.

Why Annual Property Valuations Matter

Getting updated valuations on all owned properties accomplishes two things:

  1. It quantifies any value increases if prices in your area or state have risen.
  2. It reveals whether any existing assets have built enough equity to fund the deposit on another property.

You mainly want to see if you have around $60-70k in drawable equity. This amount gives you the 20% deposit lenders want to see on a $300-350k purchase – a sensible next step for most investors.

Act When The Numbers Align

Perhaps market movements have positioned your portfolio favorably for expansion. Alternatively, a lackluster period may mean your next acquisition lies further down the road.

Either way, let the valuations from your finance broker guide next steps instead of gut feelings. If the math indicates it’s go time, Empire 8 Property urges moving swiftly to:

  • Get pre-approved for additional purchasing capacity based on your equity
  • Research potential areas/properties with your buyer’s agent
  • Make an offer and finalize lending when the right option arises

The more quickly you can act when the numbers give the green light, the better. Markets shift rapidly, so capitalize on growth when evident. Stay attuned to your portfolio’s equity situation through periodic check-ins.

Let Empire 8 Property help take the guesswork out of your investment journey. Get in touch today to map out a custom wealth-building plan tailored to current realities.

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