Property Investing
Investing in the property market is an extremely popular choice for many Australians.
In our experience the most successful property investors are those who have sound investment
strategies in place, which focus not only on current and short-term investment goals,
but look deeper and at the bigger picture, creating a long-term vision.
How a Mortgage Broker Can Assist with Your Investment Property
Funding your investment property is a critical part
of the investment process. The wrong loan can see your long-term investment strategy falter and not
fulfil your goals. At Welcome, we also
understand that finding the right investment property
can be time consuming enough, without navigating
the financial aspect and securing a loan for the purchase. This is where our team can help!
At Welcome , we will:
Help find the right loan
that fits with your situation and goals
that fits with your situation and goals
Assist in calculations
in relation to current and future borrowing capacity and affordability
in relation to current and future borrowing capacity and affordability
Provide access
to a variety of lenders ensuring you receive the most competitive home loan product.
to a variety of lenders ensuring you receive the most competitive home loan product.
Guide you through
the whole process from application through to settlement, answering any questions you may have along the way.
the whole process from application through to settlement, answering any questions you may have along the way.
Differences between interest only, principal & interest loans?
Interest and principal and interest loans have both pros and cons, which should be considered based upon your individual financial circumstances, and your long-term investment goals.
Interest and principal and interest loans have both pros and cons, which should be considered
based
upon your individual financial circumstances, and your long-term investment goals.
upon your individual financial circumstances, and your long-term investment goals.
Ordinarily with a principal and interest loan when you make a loan repayment,
your repayment pays down some of the principal balance as well as the interest accrued.
However, an interest only loan, simply pays down the interest.
your repayment pays down some of the principal balance as well as the interest accrued.
However, an interest only loan, simply pays down the interest.
Ordinarily with a principal and interest loan when you make a loan repayment, your repayment pays down some of the principal balance as well as the interest accrued. However, an interest only loan, simply pays down the interest.
For investors, an interest only loan has the benefits of lower repayments, and assisting with cash flow,
with interest payable on investment properties being tax deductable. However, making interest
only repayments can reduce borrowing capacity, which may be a detriment for subsequent purchases.
How can I improve my borrowing capacity?
There are many ways to increase your borrowing capacity as a
property investor, which include increasing household income
through increases to salary, investment rental income, decreasing
your liabilities such as cancelling or reducing your credit card,
paying out any other debts and loans, or consolidating your debts
into a product with a lower interest rate.
Also considering refinancing existing home loans to more favourable home loan products and terms, as assessed by lenders. Other areas where borrowers can improve borrowing capacity can occur through lifestyle changes, reducing your living expenses and any unnecessary discretional spending.
Also considering refinancing existing home loans to more favourable home loan products and terms, as assessed by lenders. Other areas where borrowers can improve borrowing capacity can occur through lifestyle changes, reducing your living expenses and any unnecessary discretional spending.
There are many ways to increase your borrowing capacity as a property investor, which include increasing household income through increases to salary, investment rental income, decreasing your liabilities such as cancelling or reducing your credit card, paying out any other debts and loans, or consolidating your debts into a product with a lower interest rate.
Also considering refinancing existing home loans to more favourable home loan products and terms, as assessed by lenders. Other areas where borrowers can improve borrowing capacity can occur through lifestyle changes, reducing your living expenses and any unnecessary discretional spending.
What are the benefits of an offset for property investors?
Offset accounts are a fantastic facility for property investors. Some of the benefits include;
a clear separation of debt, ability to increase savings, providing a contingency buffer as well as the benefit of maintaining tax deductions, particularly with an interest only loan.
a clear separation of debt, ability to increase savings, providing a contingency buffer as well as the benefit of maintaining tax deductions, particularly with an interest only loan.
Offset accounts are a fantastic facility for property investors. Some of the benefits include;
a clear separation of debt, ability to increase savings, providing a contingency buffer as well as the benefit of maintaining tax deductions, particularly with an interest only loan.
a clear separation of debt, ability to increase savings, providing a contingency buffer as well as the benefit of maintaining tax deductions, particularly with an interest only loan.
