A loan is a necessity for most of us when buying a property – it is just a tool that allows us to buy a property we could otherwise not afford. But it also enables us to gear the investment, which in turn, magnifies your return. So think of the loan as your friend, but remember to treat your new friend well. You will need to be able to meet the monthly interest payments so we’re careful to ensure you can make those payments.
There are so many lenders available to investors now it can be a little frightening. But don’t think the big banks are your only options, as there are many lenders who operate without large public shopfronts or lots of staff. These can also offer very attractive loans that only a good broker will know about.
As you’d expect, one of the first stages in acquiring a property is to assess how much you can safely borrow. This determines the price range you can buy your property within and is clearly an essential step in your Property Success Masterplan.
We work closely with long-standing and widely experienced brokers who are out there looking for the best deal for you. If they don’t provide that, we won’t be recommending them – and they know it!
The finance broker’s role includes not only knowing which lender suits your situation, but also some ‘inside knowledge’ – like who at the bank is best to talk through a tricky application. This is more important than most people realise and it makes an experienced broker very valuable.
Your broker will assist you with every step of the loan application process, through the settlement and afterwards to ensure you completely understand how your loan works.
The brokers we refer our clients to, work closely with Investment Property HQ to provide a smooth and professional experience for our clients. We appreciate their expertise and greatly value the important service they provide. You will too.
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Leverage means using someone else’s money to magnify your investment returns. If you put down a $100,000 deposit and borrow $400,000 to buy a $500,000 property, you are gearing or leveraging your investment. If the property value grows by 6% p.a. for 5 years then it will be worth $669,112…