Investment Property Loans Sydney
The decisions you make about your finance at the beginning can affect what you're able to do next.
How much equity should you use? Should the loan be principal and interest or interest only? Do you need an offset? How should the security be structured? And if you're planning on buying property number two or three, will today's loan structure help you to do that - or make it harder?
These are the conversations I want to have before we choose a lender.
At My Mortgage Concierge, we help property investors understand not only what they can borrow, but how to structure their lending with their longer-term plans in mind.
Buying your first investment property
Buying your first investment property is exciting, but it's also the point where getting the finance structure right really matters.
You may be using savings, equity from your home or a combination of both. We'll look at how much you can comfortably invest, what you want the property to achieve and how this purchase fits with your longer-term plans.
I also want to understand what comes next.
Is this likely to be your only investment property? Do you want to build a portfolio? Could your current home eventually become an investment?
Those answers can change the way I recommend structuring your lending today.
Why loan structure matters
Interest rate matters. But it's not the only number I look at.
The way your loans are structured can have consequences well beyond the next repayment.
A good example is offset versus redraw.
They can look very similar while you're living in your home. But if you later decide to keep that property as an investment and buy another home, the decisions you've made about where you've kept your savings can become very important.
That's why I like to understand where you're heading before we decide how to structure the loan.
Read: One small decision. Big future consequences.
Building a property portfolio
Once you own more than one property, lending can get more complicated.
One of the things I pay particular attention to is keeping you in control of your properties wherever possible.
It can be tempting to use the same lender and simply tie the equity in one property to the next purchase. Sometimes it looks like the easiest option.
But easy today isn't always flexible tomorrow.
If multiple properties are tied together as security, selling one, refinancing one or accessing equity later can become more complicated because the lender has an interest in the whole structure.
Where appropriate, I prefer to look at ways of keeping loans and securities separate so that one property decision doesn't unnecessarily affect everything else.
Read: Three properties. One lender calling the shots.
What we'll work through before choosing an Investment Loan
There's a lot more to choosing an investment loan than finding a competitive interest rate.
Before we start comparing lenders, I want to understand what you're trying to achieve, what your financial position looks like today and how this property fits into your longer-term plans.
Some of the things we'll work through together include:
Borrowing capacity: how much can you comfortably borrow, and how much the purchase impacts your ability to borrow again?
Available equity: Can you use equity in an existing property, and what's the best way to structure that borrowing?
Loan repayments: Would principal and interest or interest-only repayments better suit your circumstances and plans?
Offset and redraw: Which features will give you the flexibility you need, both now and down the track?
Loan structure: How should we separate your lending and structure the securities to avoid unnecessary complications later?
Lender selection: Which lenders' policies best suit your circumstances, particularly if you're self-employed or already have an investment portfolio?
Cash flow and buffers: What will the property cost you to hold, and how much breathing room should you have if circumstances change?
We don't need to have all the answers at the beginning. That's what these conversations are for.
My job is to help you understand your options, consider the trade-offs and make informed decisions about your finance before committing to a particular lender or loan product.
Because the right investment loan isn't just about getting this property purchased. It's about making sure today's decisions support what you want to do next.
Helping property investors from Sydney's Inner West
Many of the investors I work with are based here in Sydney's Inner West, but the properties they're buying aren't necessarily local.
They may be using equity in their Inner West home to purchase their first investment property, adding another property to an existing portfolio, or looking further afield for an investment that fits their strategy and budget.
For me, the location of the investment property is only one part of the conversation.
I want to understand that you are trying to achieve, what you already own, how much equity you have available and what you might want to do next.
From there, we can work through your borrowing capacity and lending structure and make sure today's finance doesn't unnecessarily limit tomorrow's options.
