- Client Stories
- Home Loan Information
- Types of Home Loan
Despite fluctuating markets, building a property portfolio remains a popular form of long-term investment here in Australia. But finding the right investment property can be tricky… and it takes considerable time and effort.
Most importantly, where and what you buy will affect your return on investment.
Here at Shore we develop your unique strategy with careful consideration.
Shore Financial CEO Theo Chambers…
“Creating wealth through property starts with one property. The moment you have two properties you have a portfolio. And as you take steps along the journey to growing your wealth through property, every decision you make along the way is a vital stepping stone and has a consequence.”
Some important factors to consider when looking for the right property are:
Suburb – Look for areas where high growth is expected, so there is potential for capital gains. Ensure public transport is easily accessible and the neighbourhood is safe.
Rental yield – Look for areas where rental return is high in relation to property value.
Vacancy rates – Find out about the vacancy rates in the neighbourhood. A high vacancy rate may indicate a less desirable area, which could make it harder to rent the property out, or sell it in the future.
Planning – Find out about proposed changes in the suburb that may affect future property prices. Things like new developments or zoning changes can affect the future value of a property.
Finding the best investment loan is just as important as finding the right property.
Choosing the right investment loan is not always about getting the lowest interest rate.
The best loan for your investment property is the one that works best for your investment strategy.
For example, a loan with a cheap interest rate could be unsuitable for an investor wanting to buy and then re-sell quickly if that same loan comes with a large application fee and a substantial penalty fee for breaking the loan. Excessive fees would reduce the overall profit.
An investor who wants to buy a rental property and hold onto it for years could be missing out on lower interest rates available or alternative loan options to the ones their bank offers over the counter.
These are just a few ways that investors could be losing money by not making the effort to find the right investment home loan product to suit their individual investment strategy.
Many investors think they need a deposit to purchase an investment property.
However, many banks may allow you to use the equity in your home to secure the entire cost of purchasing your investment property.
The type of home loan you choose can also be an important factor to consider for your overall investment strategy. Different types of home loans have different levels of flexibility. The amount of flexibility you need will depend on your investment goals. It is important to understand the difference between an investment loan that helps you reduce debt more quickly and an investment loan that can help you to purchase more investment properties in the future.
Levels 3 & 4, 153 Walker Street
North Sydney, 2060