If you’ve owned your property for a couple of years or more, you might find that you already have some equity tucked away, which can be a great starting point for building your investment portfolio. Maybe you’re thinking about jumping into the property market as an investor instead of buying a place to live.
We’ve been right there with many of our clients on this journey, and we understand how to use the equity in your property to secure more real estate opportunities.
Plus, we know some lenders who are like a helping hand for property investors, making it super easy for you to grow your investment portfolio.
Whether you’re eager to purchase your first investment property or looking to expand your portfolio, we’re here to lend a helping hand.
While 95% financing is still an option for investors, many prefer to limit their leverage to 90% to maintain a buffer for each investment property.
Banks may use different methods to estimate your property's value when you're considering a home loan top-up for an equity release. Some banks use modelled estimate valuations, which rely on electronic assessments and recent property sales data.
Modelled estimate valuations don't take into account property improvements, such as renovations, additions, or upgrades. These improvements can significantly impact the property's actual value.
As mortgage brokers, we work with banks that conduct comprehensive property valuations, ensuring you can leverage the property's full equity. This can also help you save on mortgage insurance costs.
We can arrange valuations through different banks, providing you with multiple options to consider before submitting a loan application.
We assist in creating a cash flow analysis for your investment property purchase. This includes estimating all costs associated with the purchase and ongoing ownership, helping you determine your weekly financial commitment.
With most properties targeting a 5% yield and competitive interest rates, rental income often covers a significant portion of mortgage repayments, depending on your initial deposit.
Property investors often choose interest-only repayments for their investment loan while opting for principal and interest repayments for their home loan. This strategy leverages the tax-deductible status of investment loan interest.
Investment properties generate rental income, which is taxable. However, you can offset this income by claiming ongoing property costs such as rates, maintenance, and mortgage interest. Consult your accountant for the best tax structure.
While some lenders offer lower interest rates for principal and interest repayments on investment loans, interest-only repayments may still result in lower monthly cash outflows, depending on your financial situation.
Most interest-only loans have a 5-year term before transitioning to a principal and interest loan over 25 years. Understanding the terms and implications is crucial for long-term financial planning.
