GROW YOUR WEALTH FASTER
Borrow up to 95% from the banks
Achieve compound growth
Expand your portfolio
Purchasing the right investment property is a proven strategy to build wealth, and one of the biggest advantages is that you can leverage the banks money and achieve compound growth on the full value of the asset. Property investing is a long term game but when done correctly it is extremely rewarding financially.
PURCHASING YOUR FIRST INVESTMENT PROPERTY
5% deposit for most lenders
Don't forget about additional purchase costs
When purchasing an investment property, you will need a minimum of a 5% deposit in most cases. The deposit amount can vary between banks, so your broker can help with finding which bank is the best fit for you. There are other purchasing costs involved with a property, lenders charge ‘lenders mortgage insurance’ when you have less than a 20% deposit. There is also stamp duty, and legal fees.
EXPAND YOUR INVESTMENT PORTFOLIO
Going from 1 to 2 investment properties
Use your existing equity
If you have any existing properties with equity in them, you can use this equity (up to 80% of the properties value) to purchase additional properties. To do this we refinance your existing loan, and get cash out which will be the deposit for your next loan. It's important to use a broker that can get you the best deal for both the refinance and the new purchase.
PROPERTY VS STOCK MARKET
Borrow up to 95% for the property
Leverage the banks money
While investing in both the share market or property are both proven strategies, it's important to be aware of the key differences. The banks will lend you an additional 95% for a property, while they will only lend you 50% for shares. The important thing to note here is that if you purchased a property for $400,000 ($20,000 deposit) and it grows by 5%, you are achieving that growth on the entire property, not just your deposit. $400,000 + 5% = $420,000. If you took out a loan for shares of $40,000 ($20,000 deposit) and it grew by 5%, you would have $42,000. This is an $18,000 difference for the same deposit.
BEST LOAN STRUCTURES FOR LONG TERM GROWTH
Loans structured for the future
Plan in advance!
In our experience in dealing with client's finance, we have found that most banks and brokers have a poor understanding of how to effectively structure investment property loans in order to achieve the most effective outcome for the borrower. We will advise you on the best structure and how it will enable you to grow your portfolio.
WE HAVE EXPERIENCE WITH COMPLEX LOAN STRUCTURES
Multiple properties with different lenders
Company / Trust loans
Cross collateralization vs stand alone