Sliding into your second property? Adding to your self managed fund? Looking at your cash flow or capital growth? Whatever your next step, we’re here to take out the hurdles.
The process.
Whether it’s your first time or you’ve done this before, familiarise yourself with the ins and outs of investment borrowing.
Your next investment starts by taking few minutes to answer a few questions right here. After that, we’ll meet to discuss your goals, in person or online.
To find the most suited lenders, we’ll discuss your options and borrowing power. An existing property can be used as equity, which means you may not need as much deposit as you first thought.
Found a lender? Great stuff. We’ll do the paperwork to package, sign and lodge your documents.
Once pre-approved, your borrowing power will be revealed. Now you can make an offer on your next investment.
You’ve made your move and have just secured a property, all that’s left is the paperwork, which you can leave to us. We will work overtime to ensure your property is accepted by the bank. Grab a sharpie, because a settlement date will then be set in place.
It’s settlement time! We’ll coordinate with your solicitor or conveyancer and the lender, in line with the date on the contract. Once the settlement takes place, pop the champagne because you’ve just won the property game.
Investment Strategies
Let’s make the complicated, uncomplicated. An investment strategy is just the way you want to invest your money. Still not crystal clear?
Rentvesting
The freedom of renting meets the stability of owning. ‘Rentvesting’ is a popular strategy for first time investors. Basically, you’re investing while you rent. Stay in the suburb you want, while owning an investment somewhere else.
Use your home to buy another
If you already have a home, you can use its equity to top up your deposit. Don’t forget, equity is not free money. When you access your equity your loan balance will increase and so will your repayments.
Positive and negative gearing
What’s the difference between the two, and which is right for your investment property?
Positive gearing is when your total rental income is MORE than the cost of owning and managing the investment property (loan repayments, interest, maintenance, management fees, etc). To put it simply, your property props up finances.
Negative gearing is the opposite. It’s when your total rental income is LESS than the cost of owning and managing the investment property, leaving you to make up the difference in payments.
Positive gearing allows you to have an increased income and generally won’t put you out of pocket. However, you will be taxed on any additional cash from your investment.
With negative gearing you can claim tax deductions on expenses related to owning your investment property. The capital growth on the property will also eventually outweigh the expenses as the property grows in value overtime.
Like the names suggest, there are pros and cons for both situations, so it’s important to get the right advice on which one is better suited to you.
Loan types and features
There are a number of loan types and features that you might want to consider for your refinancing home loan, scroll through some of the options below to get a better understanding of what the differences are. We’re here to answer your questions when you’re ready.
FAQs about investment loans.
There are several fees that often aren’t discussed in length when buying a property. These include stamp duty, pest and building inspections and mortgage registration and transfer fees. Get in touch with me today for an up-front conversation about all the hidden fees.
Absolutely! You can use your existing home to buy your investment without needing to dive into your savings. This equity can be used for various different reasons, such as a deposit, bonds, renovations or to take out a line of credit.
The ideal loan should maximise your goals for cash-flow and capital growth. One of the first considerations for your loan is will it have a fixed or variable interest rate? Different lenders also play a part as they all offer different loan options. I can help you understand your options and find the right loan with the right features to save you both time and money.