Investor Loans
Property Investment
An investment property is a great way to expand your portfolio and start growing your wealth. But before you get started, it is important to understand all of your options to help simplify the decision-making process. This is where it helps to work with a trusted mortgage broker. You’ll unlock more financing options and gain access to a variety of investment property loan products to help you pick the right lender for your property investment loan.
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An investment property is a great way to expand your portfolio and start growing your wealth. But before you get started, it is important to understand all of your options to help simplify the decision-making process. This is where it helps to work with a trusted mortgage broker. You’ll unlock more financing options and gain access to a variety of investment property loan products to help you pick the right lender for your property investment loan.
When Choosing the right investment loan structure
An investment loan is another term for a loan that is used to finance a property purchase. But in this particular case, the property is purchased for the sake of investment. In other words, you do not intend to live in it.
There are several different types of property investment strategies that are popular today.
Fixing and flipping
Fixing and flipping refer to purchasing a home, renovating it, and then selling it for a higher value. For a fix and flip strategy to be successful, the renovation cost must provide enough value to raise the cost of the property to make a profit.
Buying and holding
Buy and hold means purchasing a property and then renting it out to tenants. The property is kept in the investor’s portfolio for the long term and may be renovated in the future to fix existing issues or increase the rental value.
Buying and holding may also yield gains if the property value increases over time. This tends to happen when demand for property in an area increases.
Developments
The last option is to invest in property development. Once the project is completed, the investor can hold onto the property, rent it to tenants, or immediately sell it.
Benefits of property investment
There are several reasons why people invest in properties.
- Building more equity and wealth for financial security and freedom in the future.
- Diversify your current investment portfolio.
- Start climbing the property ladder.
- Protect your wealth against inflation.
- Generate wealth passively through rental income.
- Take advantage of numerous tax breaks and deductions.
While real estate investment comes with numerous benefits, there are also drawbacks that one needs to consider. For instance, liquidity can be an issue because it can be challenging to convert property assets into cash or cash into assets. This is because real estate transactions can take months to close.
Even if you’re not interested in building an investment portfolio, there are still benefits that you can take advantage of such as consistent cash flow and hedging against inflation.
Finding investment home loans with a better rate
Much like regular home loans, some banks and lenders offer different varying rates based on different factors. If you’re looking to find an investment loan with the best rates available to you, then it helps to work with a mortgage broker.
A mortgage broker can help you compare different offers by lenders and banks to help you choose the option with the best rates. They also specialise in different kinds of investment loans, such as offering discounts for green property investments or finding the best rates based on your current credit score.
Some may also specialise in property investments in a particular area. These mortgage brokers have insider knowledge of the market there, which allows them to unlock great deals for property investors and helps to filter through all of the available loan products.
Why should you work with a mortgage broker for investment property loans?
Regardless if you’re just getting started on the property ladder or if you want to diversify your portfolio, here are a couple of reasons why working with a mortgage broker is beneficial.
- Insider knowledge of the local property market gives you access to more financial products and lower rates.
- Gain access to ongoing support and advice from professionals.
- Save time that would otherwise be spent comparing different options on the market.
- Simplify the process by having a mortgage broker guide you through the complex process of securing a home loan for property investment.
Get in touch with Lendstreet
Professional and impartial advice from a mortgage broker can make property investment much more straightforward. Working with Lendstreet gives you access to tailored lending options from our network of over 60 lenders, and our insider knowledge helps you get approved as quickly as possible. We’ll guide you through the entire process with jargon-free explanations. Get started by calling 1300 317 042 or schedule a free and no-obligation consultation with one of our Senior Mortgage Brokers today.
Whether it’s your first time or has invested in properties several times before, the changing market rates and the diverse range of loan products available can still be overwhelming and sometimes, confusing. A mortgage broker’s expert assistance may still come in handy. If you are in the process of buying a new property, this article might help. Click it here
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