Buying a residential property versus purchasing an investment property involves entirely different considerations. If you plan to live on the property, your priority will likely be ensuring it meets your personal needs. You’ll be thinking about such factors as its proximity to your child’s school or your workplace and the features of the home.
Adversely, when searching for an investment property, your focus is likely to be its earning potential, the local vacancy rate, and
opportunities for capital growth. By extension, the home loan that works best for the purchase of your investment property may differ
markedly from the home loan that is ideally suited for an owner-occupied property. Most importantly, your investment property home
loan should cater to your needs as an investor.
That said, here are the vital criteria to be on look-out for when selecting the right home loan for your investment property purchase.
Interest rate type
There are three interest rate options to choose from when signing up for an
investment property home loan:
Repayment features
With our in-house mortgage broking division we bridge the gap between the countless phone calls and emails between lender and accountant making your refinancing and borrowing much less stressful.
SMART Business Solutions is a registered financial services provider and perfectly positioned to help you calculate the level of home loan you qualify to borrow and how to boost your borrowing power.
If you’re in the market for a financial advisor with knowledge of the property market and mortgages, SMART Business Solutions can team up with you to help you purchase a property at the best interest rates and on the most reasonable terms possible. We are here for you every step of the way, providing regular check-ins to ensure you stay on track to property ownership success!
Our holistic approach to taxation, accounting and financial planning means we bridge the gap in the client
experience, eliminating the frustration from delays that are often inevitable with multiple stakeholders involved in the lending
process.
While commercial property is a little more difficult to understand than residential, it offers several significant advantages for investors.
By using a guarantor to get a home loan, you can potentially put down a lower deposit. However, it doesn’t necessarily mean you will be able to borrow more money.
Whilst retention payments are very common in the building and construction industry we continually see them being incorrectly accounted for, or not accounted for, and therefore often overlooked, resulting in advance payment of taxes and/or lost income.
We are heading into a period of opening up the economy after COVID, with the need to repair the budget, an election looming by May 2022, the threat of inflation and a withdrawal of central bank stimulus.
