Expert Mortgage Guidance for Investors
Discover the confidence and clarity you need to make informed decisions when starting or adding to your Investment Property Portfolio. Let us guide you every step of the way.Investing in Property
Life is always a bit of a juggling act as we balance work and career, and family – in whatever form that comes for you. These things have immediate demands on us.
There comes a time in life however, when we lift our eyes above the needs of today, this week, and this year and look towards future times. As you ponder the direction of your future, it is crucial to reflect not only on the immediate demands posed by work, family, and daily life but also on the lifestyle you aspire to enjoy in your later years and the strategies you are implementing to make that vision a reality.
What sort of life do you want in your later years and how do you plan for the life you wish for?
Contemplating the legacy you wish to leave for your children can also be instrumental in influencing your financial choices, providing a clearer sense of purpose in your investments.
When thoughts come to investing it is important for you to know “why” you want to invest, because that “why” becomes your motivation factor in the years ahead. This understanding will act as your guiding compass through the various challenges and opportunities that lie ahead, helping you remain focused and committed to your long-term aspirations
The “why” factor keeps you on track.
The two main areas of investment are the stock market and the property market. Some people are drawn to one, some to the other, although it is quite common for people to diversify into both, thereby balancing potential risks and rewards.
At Ask Alan Mortgage Brokers, we are here to help you step into the world of investing by structuring your borrowing portfolio to maximise your wealth creation, while ensuring (in conjunction with your accountant) that it is tax compliant and effective.
You can put your wealth strategy at risk if you do not give sufficient thought to how to structure your loans and properties.
Our role is to listen carefully to your hopes and dreams for the future and become a valued partner in helping them come true.
To some we are simply “that people who get the loan”, but to others who truly see our value – we are the partner in your financial journey through life who can help provide the future you wish for.
Already Invested?
Are you a property owner seeking to enhance the efficiency and effectiveness of your investment portfolio?
Whether you’re contemplating the addition of another property or considering a change in your living situation, we’re here to assist you in making your money work even harder for you.
We understand that navigating these decisions can be complex, and we’re committed to providing you with the guidance and support you need, no matter how small or trivial your questions may seem.
No question is too small for our time.
Common Questions for Investors
Starting or adding to your Investment Portfolio can be confusing. Here are some common questions and answers to help you navigate the investment process with confidence.
What is an asset?
There are differing definitions of what makes something an investment but they all focus on two main points;
· The ability to generate income.
· The ability to increase in value.
The point to which the MOST attention should be paid is the ability to generate income because that is the most reliable indicator of something’s inherent financial value.
The trend is your friend..
When looking to invest in property, or decide whether to hold an investment or sell, it’s important to come back to a stable point of information, the market trend line.
Looking back at past data can tell us a lot, and there are always patterns in trends that can help guide us through tricky patches. Contact us, or read through the blogs in our News section to find out more.
How much deposit do I need for an investment property?
Most lenders require a minimum deposit of 20% of the property’s value for an investment loan. However, with Lenders Mortgage Insurance (LMI), you may be able to buy with as little as 10%, depending on your financial position and the lender’s criteria. Some investors also leverage existing equity to fund a deposit.
What is Lender's Mortgage Insurance (LMI)?
Traditionally, lenders require borrowers to have at least a 20% deposit for a standard loan. However, by charging an insurance premium called LMI, lenders are able to offer lower deposit home loans. LMI protects the lender if a borrower is unable to meet their mortgage repayments and the property has to be sold.
LMI acts as a security to the lender, who considers borrowers with less than a 20% deposit as riskier than those with a 20% (or higher) deposit.
This premium is in most cases added to the loan. The amount of premium depend on several factors like the particular mortgage insurer and the amount of deposit the borrower has.
Can I use equity from my home to invest in another property?
Yes, many investors use the equity in their current home or properties as a deposit for their next investment. This strategy allows you to expand your portfolio without needing to save a new cash deposit. Ask Alan Mortgage Brokers can help calculate how much usable equity you have and structure your loan to suit your goals.
Should I get an interest-only or principal and interest loan?
Interest-only loans can be appealing for investors looking to maximise cash flow and tax deductions in the short term. However, principal and interest loans help build equity faster. The right option depends on your investment strategy, time frame, and financial goals—a broker can guide you through the pros and cons.
What’s the difference between a positive and negative geared property?
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A positively geared property earns more rental income than it costs to own, generating profit.
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A negatively geared property costs more to hold than it earns but may provide tax benefits and potential for capital growth.
Ask Alan Mortgage Brokers can help assess how each strategy affects your borrowing capacity and cash flow.
How many investment properties can I own?
There’s no set limit on how many properties you can own—it depends on your borrowing power, income, equity, and lender policies. Strategic lending and correct loan structuring are crucial for scaling your portfolio. Contact us today and we can help you plan and grow sustainably.
Guidance for your property portfolio
At Ask Alan Heath – Mortgage Broker, we recognise that every investment decision you make is a significant stride towards your future, and we are wholeheartedly dedicated to assisting you in navigating this complex journey with unmatched expertise and genuine care.
We focus on breaking down the investment process into manageable parts, equipping you with valuable insights that empower you to make informed choices that not only resonate with your current needs but also align perfectly with your long-term aspirations.
Whether you are in the process of expanding your property portfolio or contemplating your very first purchase, we provide customised strategies specifically designed to enhance your financial security while nurturing a legacy that can be passed down through generations.
With our support by your side, you can embark on your investment journey with confidence, fully equipped with the knowledge and guidance necessary to transform your dreams and aspirations into tangible reality.
Ready to Start Your Mortgage Journey?
Take the first step towards securing your dream home. Contact us today for a personalized consultation or to begin your mortgage application process. Let us guide you with expert advice tailored to your needs.
