Secure the right loan for your investment
Beyond the challenge of finding a property that has tenant appeal and high yield potential, there are the practical details to secure the right loan or finance for your investment.
When approaching your lender or various lenders, it is important to remember that investor borrowers are the most sought after clients that financial institutions have.
Seasoned investors usually have high equity resulting from a history of borrowing, providing them with a competitive advantage.
Those with less experience are still considered desirable because they have the potential to return as high value repeat customers.
It is also necessary to determine specific property goals you are looking to achieve so that you know exactly what you want from your borrowed funds.
Researching the loan products of various lenders can eliminate unsuitable options and prepare you to effectively negotiate to secure the right loan with favourable terms.
Whether you are looking for a standard home loan or something more complex that helps you make use of repayments, tax and gearing, prudent inspection can go a long way.
Once you have established the right loan for your investment and personal situation, set up a schedule to review your terms on a regular basis.
Taxation rules, interest rates and available products are constantly changing – it is best to revisit the terms of your agreement in set time periods to ensure that you are on the best lending scheme as possible.
Even if switching loans seems like a hassle and more paperwork, it may save you thousands of dollars in the long run – calculate the savings and then let yourself be guided by the numbers.
As with most financial dealings, it is important to set up a budget and adhere to it as much as you can – try not to sign up for loan extras that you do not need.