On August 31, 2016

What mortgage solution will work best for your next investment?

When you're thinking about building wealth for the future, property investment probably springs to mind. That is because of how effective it can be at providing a steady income from rental payments, as well as providing solid capital gains (if you choose the right property). It can be easy to pick an investment if you have enough money, or at least a great mortgage option.

However, a lot of people are not 'ready' to invest because they do not have enough money. That should not be holding you back. Because you are trying to build wealth with your home loan, the REIN Group understands your needs more than a bank or other lending institution might. When you are weighing up mortgage options for your investment, accessing professional help is a sound move.

Why are there so many options on the market?

According to the IBISWorld Mortgage Brokers in Australia report, the industry is worth $2 billion in annual revenue. That is split between less than 6,000 businesses – some totally independent and smaller than others. Between 2011 and 2016, the industry underwent growth of 4.9 per cent per year, so it is a growing market.

That growth could be a reason for the saturation, however it does create a lot of choice. The Big Four banks might be the options you turn to first, because they are the most recognised. They might not offer the best option for your needs, though.

What home loan option is the best for your needs?What home loan option is the best for your needs?

At the REIN Group, our experts will take your needs, and find the best option available. It might come down to the amount on offer from a particular lender, or the deposit required. Without the assistance of a professional, you may find yourself dealing with a lender who does not have your best interests at heart.

How much do you need to borrow to invest?

The NAB Residential Property Survey from Q1 2016 shows how many local investors bought in the first three months of this year. Around 25 per cent of all new home sales were to local investors, with 20 per cent of established homes bought by local investors.

This group of people is clearly very active in the market, because of how successful it can be. That points to two things: property is a great industry to invest in, and you will be facing stiff competition, so should be prepared to pay for what you get.

We can make sure you have a large enough home loan to afford what you really want.

Not only can the REIN Group help you choose the right property for your specific needs, we can also make sure you have a large enough home loan to afford what you really want.

The CoreLogic RP Data monthly indices to July 31, 2016, shows that the median dwelling value in Sydney increased by 9.07 per cent over the past year to $1,008,590. More specifically, the median apartment value is $734,950, and houses sit at $1,095,160. Depending on where you want to invest, who you want as tenants, how much you are willing to pay, how long you are wanting to hold the title for and your expected rental yield will depend on the sort of home you should buy.

To be closer to the CBD, apartments are a more realistic purchase because of the recent reduction in average block sizes. However, smaller families might be more likely to live in a house, even giving up proximity to the CBD. Your initial deposit size will depend on how much a lender will allow you to borrow, so you need to decide on the exact requirements for the investment property before you make a final decision. It could be that you borrow more than $2 million (you will need a tadalafil serotonin much larger deposit) but it will meet your needs perfectly.

For help knowing what to invest in with a home loan, and what loan option is best for you, talk to the REIN Group.

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