Investment Loans
Buying an investment property to rent out is a popular form of investment and it’s a great way to grow your wealth.
Buying an investment property can be daunting, but it doesn’t have to be. We’re here to help! EasyPlan Financial Services can simplify the process by helping you find the most suitable investment property loan for your needs and your wallet.
Our experienced team will assess any risks involved in the investment, so that you reach your investment goals sooner. That way, all you have to worry about is which tenant’s applications you’re going to accept.
Whether you’re a first time investor or looking to add to your property portfolio, there’s an EasyPlan investment loan that is right for you.
Investing can be a great way to grow your wealth by making your money do all the work. Professional help can go a very long way when you’re considering how to develop your investment portfolio and can help to assure you that you’re getting the most out of your portfolio. Speak to an EasyPlan Mortgage Broker to find out what types of investments will help you achieve your goals.
Your investment portfolio will likely look completely different from the next investor’s, so keep it personal. When you start to consider creating or developing your portfolio, think about the following:
What are your personal short, medium and long-term goals?
There are plenty of ways to invest, so it’s important to consider your short, medium and long term personal goals; different investments are suited to different time frames. Talk through your goals with your EasyPlan Mortgage Broker to find out what your loan might look like and how it can help you achieve your goals.
Diversity is key
Diversification is avoiding putting all your eggs in one basket. Diversification means that you have the potential earnings from more than one investment so that you can manage the risk of suffering a big hit from a downturn in any one investment.
Ask for help
The world of property investment is a confusing one, but it’s not a game of chance; having someone’s feedback is essential. Your EasyPlan Mortgage Broker will take the guesswork out of property investment loans and will make sure your money is working for you.
When you meet with an EasyPlan Mortgage Broker, they’ll start developing a personalised investment loan strategy based on your goals. On your instruction, they’ll implement your strategy and review it regularly to make sure you’re getting the most out of your investment.
If you are already a home owner, you may not need to provide a deposit to fund the purchase of an investment property.
Instead, using equity to invest in property may be a strategy that’s available to you. The property that you live in is not the only source of equity. You can also use the equity in an existing investment property to help buy another investment property.
The equity release model
This model allows a borrower who already has his or her own home or investment property to use equity in that property (commonly your own home is often referred to as your principal place of residence) by unlocking this money (‘equity’). Using equity to buy your first investment property is easy with the help of a professional broker.
Structuring the loan
Releasing equity from your home in a structured way allows you to keep your savings in the bank. Most investors want to combine the benefits of not using their own savings with tax minimisation advantages when buying an investment property. So keep in mind you should be working through this with your experienced mortgage broker to get it right to allow you to keep investing.
Many property investment gurus say it is important to repay the loan on your home as soon as you can. This is because there is no tax advantage to having money owing on your home mortgage like there is on an investment mortgage. For this reason it may not be a good idea to use your re-draw from your home loan to finance your investment property, and instead use the equity that is drawn from your home to purchase an investment property.
Your EasyPlan broker can help you work out how much equity you have in your property and how it can be accessed as a source of funding for your first or next investment property. Call our friendly EasyPlan team on 02 4207 3110 or make an enquiry today.
When you’re deciding which property you’d like to invest in, it’s important to find a property that will appeal to as many people as possible. Think about what you couldn’t live without in your home and consider what your potential tenants might want or need.
A good location is key. You might pay more for an investment property in a nice suburb, but your tenants will too. A good location will allow you to ask for a higher rent, as well as attracting more potential tenants. A quiet, safe street or a property with a view will also add value to your property.
Access to public transport is a valuable draw card for your property. Being a short drive or even walking distance away from buses or trains is a great way to appeal to more potential tenants.
Plenty of storage space can never be understated. There’s nothing worse than a lack of storage in your home, particularly if you’re renting. Look for generous built-in wardrobes, ample kitchen storage and a lockable garage or shed.
Home security is a great way to appeal to potential tenants; everyone likes to feel safe in their home. Look for window locks, dead bolts and even a home security system.
Available parking is an important attribute to consider, whether it’s under cover parking or plenty of on-street parking. The more secure your parking, the more value it will add to your property.
An easily maintainable property benefits both parties. The less your tenant has to do to keep your property looking great, the better it is for both of you.
Finding the right investment property may be a slow process, but it’s worth it. You’ll be able to ask for a higher rent, and your tenants will be happy too.
Whatever type of property you’ve chosen to invest in, it’s going to need ongoing management to make sure everything runs as smoothly as possible. You can either take on this responsibility yourself or hire a professional property manager.
The DIY approach can save you money, as you don’t have to pay for a third party to manage your property. It can be an incredibly rewarding experience, but it can come with downsides if you’re a little time-poor.
You’ll need to make sure you’re meeting the legal obligations that are required from you as a landlord, such as organising any repairs that need to be carried out.
You’ll also deal directly with your tenants and will be responsible for organising property viewings and reviewing tenant applications, drawing up contracts and condition reports, performing inspections and chasing up any overdue rent, among other things.
Hiring a property manager will give you the benefit of local knowledge and experience. You’ll likely pay a fee of around 7% of the rental income, but you’ll save time and stress knowing that your investment is being looked after.
A good property manager will be able to advise you on how much rent you can expect to charge and may also be able to recommend a tenant who has the best application.
They will also handle all the tenant-facing aspects of the lease, such as:
- Drawing up a contract
- Creating a detailed condition report
- Organising open houses and reviewing potential tenant applications
- Arranging property inspections
- Collecting and depositing the rent payments into your bank account
However you choose to manage your investment, it is important to inspect the property yourself periodically to give you the assurance that your investment is safe in the hands of your property manager or your tenants.
International property investors have recognised that Australian residential property is a sound investment. It is no surprise, therefore, that overseas investors are buying property in Australia.
Benefits of overseas investors buying Australian property
Overseas investors buying Australian property have recognised the benefits that the Australian residential property market presents.
Benefits include Australian property prices in Australia’s capital cities have consistently produced an average capital growth rate of 7% per annum, according to data from the Australian Bureau of Statistics.
Australia is generally recognised by overseas investors buying property in Australia as an economically and politically stable nation.
Buying an investment property is a big step, but it doesn’t have to be a difficult one. Our EasyPlan Mortgage Brokers do all the heavy lifting so you can just sit back and enjoy the benefits.
Our EasyPlan Mortgage Brokers will sit down with you so that they fully understand your goals and needs. Then they will compare hundreds of potential loans to find the best options to suit you, give you clear comparisons between loan options, explain any costs involved and, ultimately, find the right investment loan for you.
They will tell you how much you can borrow, as well as calculate your possible monthly repayments so that you have a clear understanding of your budget when you start looking for an investment property.
Once you’ve decided on a loan, your EasyPlan Mortgage Broker will negotiate with the lenders to get you the best possible deal. They’ll prepare all necessary paperwork and lodge your application. EasyPlan handles all the legwork involved and you don’t have to worry about a thing.
Most importantly, your EasyPlan Mortgage Broker will be there throughout the entire process so you’re never left in the dark if you have any questions.