Having sufficient equity in your home is a key starting point to establish whether you can take the opportunity to purchase an investment property.
Do you have enough Equity?
- Based on the current value of your home and your existing mortgage, we will determine whether you have enough equity in your home to buy an investment property.
- To work out the available equity, we use up to a maximum of 80% of your home’s value less your existing Mortgage to determine your available equity.
- For example, a home valued at $700,000 multiplied by 80% equates to $560,000. Less the existing loan of $300,000, you would have $260,000 ($560k – $300k) as available equity for investment purposes.
Serviceability of your Investment Property
- We then access all the major banks to determine whether you are eligible to obtain a new investment loan.
- Rental income estimates are also added to your current household income as part of the serviceability requirements.
- With the combination of the Available Equity and the new Investment Loan you are now ready to buy your Investment Property.
Building Wealth & Saving Tax
- Buying an Investment Property is a great way to build long term wealth.
- A $450,000 Investment Property in 10 years time could potentially be worth $700,000 – $900,000 based on historic calculations.
- The interest you pay on the investment loans are ‘tax deductible’ which means you will receive a greater tax refund every year.
- Property Investing should be considered as part of your overall future retirement plans.
How we can HELP you
We can assist you with the following:
- Advice on your current Equity Position.
- Eligibility requirements for an Investment Loan.
- Cash Flow and Tax Considerations on a potential Investment Property purchase.
- Advice on the correct loan structures for your Investment Property.
- Get you in financial position so you are ready to buy.
If you would like to know whether you are in a position to purchase an investment property, please complete our online enquiry form or simply contact the office on 8621 8485.