When purchasing an investment property, we always start with a pre-approved loan to confirm that you are able to borrow exactly what you need. This process involves a detailed fact find, preliminary assessment and product recommendation. After a thorough analyse of this information, we then commence the property consultation process and introduce you to the specialised property agency that we work with. PI Finance will then help you further understand the cashflow, strategy, and risks. Please refer to our ‘Step by Step Process Chart’ for further details.
For most of our clients the cost to buy and then hold an investment property is much less than initially thought. Investing in property is a personalised process that depends on multiple variables. With the guidance of our financial consultants, a property investment may pay for itself or even earn an income. We work with our clients to help them understand and capitalize on the different investment strategies and the benefits that this can make to their cashflow.
▶ Now that I have my own mortgage, how can I save a deposit to invest, let alone pay for a second mortgage?
When you are buying your first investment property and you already own or have a mortgage on your own home, it is likely that you will not need to contribute any of your own money! You can simply borrow what you need in full against the equity in your current home to fund this new investment. There are various ways to structure this and our financial consultants will help you to understand the pros and cons with each option, so you can make an informed and confident decision.
▶ I don’t believe right now is a good time to buy, so can you tell me when the property market hits the bottom?
Regardless of where Australia is in a property cycle, very few people could ever perfectly time the right point to enter the property market. Most people that ask this question will only take action when everyone else around them is saying ‘now is the time to buy’. Unfortunately, they are already behind the trend as the news only comes after the market has started increasing and they could end up buying at the peak instead. At PI Finance, we recommend you buy your first or next property right now, regardless of the current situation or speculation in the market, hold this for the long term and keep to this accumulation strategy. You may then be in the best position for when the market goes up in the future.
▶ There are so many options to choose from when I start looking at property, how do I know which is the right property for me?
There are many property options and almost all real estate agents have their first obligation to their seller, and are seeking the best outcome for the seller, not the investor. Many first time investors will buy an investment property close to their current home but this may not be the best place to invest. At PI Finance, we work with a specialised property agency that work solely with investors and ‘source’ the best opportunities around Australia to suit our client’s needs. They act similar to a buyers advocate, but do not charge any fee for service.