Investment Loans
Unlock your wealth potential with an investment property home loan!
Property investment can be a great way to build your wealth. Whether you're considering buying your first investment property or you are a seasoned property investor, Finance Brokers Tasmania can help you build your property portfolio.
Your Path to Wealth Begins Here
As life expectancy grows, we can see that people are going to need to have a sound investment plan in place to provide for themselves in retirement Investing in property has long been a popular wealth-building strategy for investors.
Whether you're looking to purchase your first investment property or expand your existing portfolio, the team at Finance Brokers Tasmania is here to support you every step of the way.
Just like any investment, success in property requires careful consideration, research and understanding of the market. Market fluctuations, economic downturns, rental vacancies and unforeseen expenses can all impact your investment returns. Through our personal experience and our industry experience, our mortgage brokers will work with you to fully understand your risks and what is involved.
Taking the leap into the property market?
Let's look at some of the important things you should consider before jumping into the real estate market:
Understanding the Market
The real estate market in Australia is diverse, with variations in trends, pricing and demand across the different states and territories. Factors such as population growth, employment rates, infrastructure development and supply-demand dynamics all play significant roles in shaping the property market.
Location, Location, Location
The location of your investment property can significantly impact the potential for capital growth and rental yields. Larger cities and coastal areas are often driven by strong demand and economic growth while regional areas can offer attractive opportunities for investors seeking affordability and potential growth prospects.
Risk Strategy
Like any investment, property carries risk. Market fluctuations, economic downturns, vacancies and unforeseen expenses can impact on investment returns.
Your own risk appetite will also dictate your comfort when selecting a property. You may be willing to invest in a property somewhere in Australia where you are going to get the best chance of a good return allowing you to invest in a second property sooner rather than later. Alternatively, you may be happier for an investment that you can drive past every day and are happy for a longer-term return on your investment.
Financing your Property Investment
Financing an investment property requires careful financial planning. From property acquisition costs to ongoing expenses such as mortgage repayments, property management fees, vacancy periods, maintenance costs and insurance, it's essential to budget effectively to ensure the investment property remains viable. Don't forget that if you choose to construct a property, you will need to budget for a period of up to 24 months where you will be required to pay interest on the balance of the loan.
With the significant rise in property prices in the last few years, you may already have the deposit for your first investment property. As an existing homeowner, you potentially have the equity in your home to finance the purchase of your first investment property. For example, if your home is worth $600,000 and your current mortgage is $150,000, you may have up to $330,000 in equity you could utilise to fund the purchase.
Legal and Regulatory Considerations
Understanding property laws, regulations and taxation is crucial when it comes to investing in property. For example, did you know that there are different tax benefits between buying an existing home and building a new home. That's why we recommend speaking with a professional such as your accountant or tax agent before making any decisions.
Before you decide to invest, we strongly recommend that you speak with an experienced property advisor. A property advisor works with each client to understand their individual needs and work out a property investment strategy to suit. They help give their clients the best opportunity to build a property portfolio.
If you would like to be put in touch with a property advisor, we can help.
Interest Only Repayments
Wondering how much your repayments would be on an interest only loan? Check out the calculator below.
Lance and his team provide an exemplary service, making the process of applying for a home loan as smooth as possible. Definitely recommend.
Highly recommend Helen Gray, amazing Broker. Thank you. From the moment I met Helen she was very friendly and engaging. She is an expert in her field and no question was a silly question. Helen explained everything in detail and made the whole process of buying a house seamless even though it can be a very stressful and daunting experience.
