Should I invest in property?
Building your portfolio
Building a property investment portfolio can be complicated and time-consuming. You need a well-informed strategy to build your investment portfolio correctly and avoid unnecessary costs. We can help you determine the strength of your borrowing capacity by completing a pre-assessment that evaluates your current financial circumstances and the correct type of loan to suit your property investment strategy.
Earning a return
One of the main reasons people invest is so they can see a return. Property investing offers two basic ways to get a return on your investment property. The first is capital growth, where you sell a property for more than you paid. Rental return is the second option, with a more immediate return from a rental income. Download our investing in property guide to learn more.
Increasing your borrowing capacity
Building a property portfolio can often be complicated with the ever-changing lending landscape since most borrowers reach their maximum borrowing capacity after purchasing a few properties. Our expert team works with you to implement an investment strategy and increase your borrowing power.
Why should I use a broker?
Many find it tempting to build their investment portfolio on their own. However, having a mortgage broker on your side has many benefits. These include: Offering a wealth of information and expertise for you to draw on. Aiming to make the whole application and approval process much easier. Identifying your needs, personal goals and investment goals. Being on your side. Our priority is you, and we want you to succeed.
Frequently Asked Questions
In short – yes you can. However, when it comes to building a staple of properties, people cap out because of their income level vs the debt level. Each property acquisition makes it more challenging to get the next property as you’re accumulating more debt. Our team of experts work with you to develop an investment property strategy that will allow you to build your property portfolio without being capped out.
When investing in property, going through the same lender for your loans might seem logical. However, it might not be the best option for you. Borrowing from the same lender for multiple properties may mean you’re entitled to an additional interest rate discount from that lender as you are borrowing more money in total. That makes you a more attractive proposition for that lender. On the flip side, borrowing from a different lender minimises your risk. If something goes wrong with one property, you can sell another one quickly, and pay off the loan relating to that property without it compromising your other loans. An Inovayt Finance professional will find the best loan structure for your expanding portfolio.
Again, this will depend on your financial goals which our expert team can assist with. When it comes to positive and negative gearing, it’s crucial you have a solid understanding of each. Negative gearing is a tax benefit you can claim if your borrowing costs are higher than the money you’ve made from an investment property. These losses can be claimed against your total income and increase your tax return and the income on your investment. Positive gearing, on the other hand, refers to when the income from your investment property exceeds the cost of owning the property. It takes into account your loan repayments, interest and all other out of pocket expenses, like rates, water and maintenance costs. Speak to one of our finance professionals to find the strategy that best suits you.