Investment Property Loans | Mortgage Broker, Glenelg, Marion and Brighton

 

Investing in property is a popular and effective way to build wealth over time. Whether you are looking to start or grow your portfolio, it's best to have a Mortgage Broker like Mel Pedler by your side. With extensive loan options, professional advice and negotiating power, I am here to guide you every step of the way on your investment journey.

Finding the right investment loan for you

No two investment loans are the same, so it's essential that we find one that suits you and your investment property. I will chat to you about your goals, strategy and finances so I can understand where to look for an investment loan that is going to suit you. 

• Over 35 lenders available: Get a great deal on your investment loan by accessing our panel of over 35 lender partners and thousands of investment loans. I will do the shopping around for you and negotiate a competitive rate.
• Expert advice: As a Mortgage Broker, I understand what types of loan structures, lenders and features will suit your strategy. I will talk you through each option and help you make a great choice! 
• Legwork: I do all the legwork, paperwork and follow-up, so you have the time required to find the right investment property. You can just sit back and wait for updates from me on how your loan is progressing.
• Releasing equity: I can also help you understand how much equity you have in your current property and how much you have available. When you're ready to get started, I will get it released for you so you can use it to invest. 
• My Home Loan service is free: As a Mortgage Choice Broker, I don't charge to find the right investment loan. Instead, the lender you choose pays a commission when your investment loan settles. 

 Call Mel Pedler today on 0433 132 079 or request a meeting by clicking on this email link:  

Mel has access to PropTrack Property Reports, which can give you great insights in to the property you are looking for, its suburb and key drivers. These reports are free for all Mortage Choice clients -  Additionally Mel also has access to the Mortgage Choice Investment Property Guide.

Reach out to Mel Pedler today on 0433 132 079 or request a meeting by clicking on this email link: 

 

Pros and cons of investing in property 

Property investment is often seen as being less risky than other forms of investment. However, while it may seem more straightforward, there are pitfalls to be aware of.

Here's what you need to consider about investing in property.

Pros

• Less volatility – Property can be less volatile than shares or other investments.
• Income – You earn rental income if the property is tenanted.
• Capital growth – If your property increases in value, you will benefit from a capital gain when you sell.
• Tax deductions – You can offset most property expenses against rental income, including interest on any loan used to buy the property.
• Physical asset – You are investing in something you can see and touch.
• No specialised knowledge required – Unlike some complex investments, you don't need any particular specialised knowledge to invest in property.

Cons

• Cost – Rental income may not cover your mortgage payments and other expenses.
• Interest rates – A rise in interest rates will mean higher repayments and lower disposable income.
• Vacancy – There may be times when you have to cover the costs yourself if you don't have a tenant.
• Inflexible – You can't sell off a bedroom if you need to access some cash in a hurry.
• Loss of value – If the property value goes down you could end up owing more than the property is worth.
• High entry and exit costs – Expenses such as stamp duty, legal fees and real estate agent's fees.

Diversify your investments

Invest in more than just property so your money isn't all in one market. If you invest in one market, it'll increase your risk and means your portfolio isn't diversified. 

Costs of investing in property

Buying, managing and selling an investment property can be costly and will affect your overall return.

Cost to buy and sell

Some of the costs involved to buy and sell a property include:

• stamp duty
• conveyancing fees
• legal costs
• search fees
• pest and building reports

If you sell your property, you will have to pay agent's fees, advertising costs and legal fees. You may also have to pay Capital gains Tax, if the property has increased in value. Having a good accountant knowlegable on your team is important, along with having a great Mortgage Broker, like Mel. 

Borrowing money to buy

If you borrow to invest, you will have to pay the property mortgage. Don't rely on rental income to cover the mortgage – there may be times when your property is empty.

Many people buy investment property with interest-only loans, but remember the interest-only period will end after a certain time. This means your repayments will increase to pay the amount borrowed, plus the interest. Speak with Mel to find out how they work.

Costs to own an investment property

Ongoing costs of investment properties include:

• council and water rates
• building insurance
• landlord insurance
• body corporate fees
• land tax
• property management fees (if you use an agent)
• repairs and maintenance costs

Tax on your investment property

Although you may be able to claim tax deductions on expenses, you'll still have to pay them up front. For positively geared investments, you may pay tax on your rental income.

Visit the Australian Taxation Office (ATO)  or your accountant to understand how tax works for investment properties.

What to consider when buying an investment property

The decision to buy an investment property should be part of your investment plan and take into consideration your goals and risk tolerance.

Once you have a property in mind, compare the income you expect to your outgoing expenses. If there is a shortfall, consider whether you can cover the expenses long-term. Also, work out whether you could cover all expenses short-term if you had no tenants for a while.

Research the property market to decide how to get an investment property. Where and what you buy will affect your return on investment.

Where to buy

• Areas you're familiar with will take time to research.
• Look for areas with high growth, higher rental yield and low vacancy rates.
• Find out about proposed planning changes in the suburb that may affect future property prices.

What to buy

• Look for properties with appealing features like a second bathroom, a garage and access to schools, shops and transport.
• Consider maintenance costs based on property type, age and features.

Get in touch with Mel Pedler - your local Mortgage Choice Broker

As a Mortgage Broker with over 15 years in finance and lending experience, I love helping my clients build their investment portfolios with the right lending solutions. I service Glenelg, Brighton, Marion and throughout Adelaide.

Everyone should have access to home loan advice they can understand. Call Mel Pedler today on 0433 132 079 or request a meeting by clicking on this email link

Call Mel Pedler today on 0433 132 079 or request a meeting by clicking on this email link: