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Investing in property to get ahead

Investing in property can be a great way to get ahead. The first steps for any smart investor are getting the right finance in place, and doing the planning upfront.

Smartline can help you with the critical steps of arranging your investment finance and doing your planning

• Property investment cashflow
• Choosing the right investment loan
• Strategies to structure investment loans

Property investment cashflow

You don’t want an investment property to become a drain on your pocket, so be careful when you are doing the planning.  The key is to make the most of your property investment dollars.

Your Smartline Mortgage Broker can provide you with an indicative cashflow analysis of your investment property over time, including loan repayments, strata fees, rates, management fees, maintenance costs and property taxes.

When you are doing your sums, be sure to consider the possibility of interest rate rises, periods without rental income or loss of your own job. There are ways to lessen the impact of these – for example, a fixed rate for some or part of your loan offers protection against interest rate rises.

Choosing the right investment loan

Choosing the right kind of loan is important. Your Smartline Mortgage Broker can help you with this, and structure your finances to minimise risk and maximise return.

Many investors prefer interest only fixed rate loans to assist them in their budgeting and to give peace of mind that repayments won’t rise. If, however, you do want to reduce your loan, but also want some protection against rate rises, consider a split loan solution.

An equity loan is also worth discussing with your Smartline Mortgage Broker as it can make it easier to fund any monthly cashflow shortfalls, and repairs and renovations to the property.

And rather than having to juggle your finances to arrange your deposit on your investment property, we can organise a deposit bond for you.

Strategies to structure investment loans

One common dilemma for investors is whether they should hold their investment property in a family trust or company, in their own name, their partner’s name, or jointly. Discussing the situation with your accountant is a step in the right direction.

More in this section: Avoiding mortgage stress Paying off your home loan faster Investing in property to get ahead Tax and negative gearing Home loan health check