Investment Loans
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 Loan Process.
From a quick chat to settlement, these are the steps to owning your first home.
Say Hello
It all starts with taking about one minute to answer a few simple questions right here. When you’re done, we’ll meet to talk about your goals, opportunities and next steps, in person or online.
Get those goals
Once we know what you need, we’ll research 60 banks and lenders to provide you with loan recommendations best suited to your needs.
The nitty gritty
Found your lender? Well sit back. We’ll do the paperwork and package, sign and lodge your documents to get you primed and ready for pre-approval.
So… How much can you borrow?
If your pre-approval gets the tick, your borrowing power will be revealed. This amount is valid for three months and gives you a clear idea of what you can spend. Let the house hunting begin!
Seal the deal
After all the ups and downs of the home buying hunt, you’ve found a home and made an offer. While you pop the champagne, we’ll keep track of your application to ensure it all runs smoothly.
Settlement – your big day!
Get excited, it’s time for settlement. Sit back and enjoy the moment, we’ll let you know when everything is finalised and your lender has released the funds.
Loan Types And Features.
There are a number of loan types available to you; variable rates, fixed rates, guarantor loans and more, 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.
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.
Calculators.
Use these calculators to help you understand your borrowing power and calculate how much stamp duty you might need to pay.
FAQs about investment loans.
What fees should I be aware of when purchasing a property?
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.
Can I use equity to buy an investment property?
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.
How do I choose the right kind of investment loan?
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.