Property Investor Finance is a full service residential mortgage brokerage that has access to over 20 lenders and well over 800 loan products to suit our client’s needs. Our brokers maintain a high standard of professional education and experience, which sets us apart from our competitors. We offer additional services such as our ongoing ‘Wealth Realisation Success Mentoring’ and our ‘Property Investment Selection Advocacy’.
SMSF’s
Leveraging your Self Managed Super Fund (SMSF) to invest in residential property is a relatively new concept that came about thanks to a relaxation of the Sperannuation rules in September 2007. In simple terms, an SMSF is now able to borrow money to purchase a residential property asset by using a Limited Recourse Borrowing Arrangement (LRBA). An LBRA means that any recourse a lender has under the borrowing arrangement is limited to the single asset purchased using the LRBA. So this allows SMSF to borrow to invest in a property portfolio without breaking the superannuation ‘no borrowing’ rules. Funding a SMSF property requires specialised advice and knowledge of the complex structure and ever changing rules. At Property Investor Finance, we help our clients navigate through the complex and sometimes daunting paperwork to help our clients take advantage of some of this new way to leverage. Given the expediential growth to date and the expected expansion in this industry we are well placed to support our clients to ensure the right structures are set up and to place them in the right funding solution for each property acquired by the SMSF.
Investor Finance
Whether you are just starting out or have multiple properties in your portfolio, our qualified mortgage professionals are ready to help you. We will provide detailed information to assist you to make an informed decision as to which financial structures and products are right for you. As you grow your property portfolio, greater importance is placed on security structure, lender and mortgage insurer limits, and property ownership structures. At PI Finance, we recognise the value of working with you and your accountant on your tax planning to integrate the right structures and products to suit your needs. We are also able to work with your solicitor to help you to
understand the importance of how your ownership structure relates to your estate planning and future of each asset. PI Finance will guide you through the increasing complexity as your portfolio grows.
Refinancing
As part of our ongoing review process, PI Finance will provide you with a full review of your existing financial products to ensure they are still suitable for your current needs and competitive in the current market. Options will then be presented to you that may save you money, improve your financial position and provide you with a better product for your current and future needs. The Australian Banking Reforms are paving the way to empower you as the consumer to get a better deal, support smaller lenders to compete with the big banks and secure the long term sustainability of our financial system. One of the recent reforms was the ban on early exit fees (sometimes referred to as a Deferred Establishment Fee) from 1st July 2011. This is a big step in empowering you to be able to make a lender switch without a huge cost. For more information on the banking reforms first announced by the government on the 12 December 2010, please refer to the following website:
http://www.bankingreforms.gov.au/content/Content.aspx?doc=home.htm
Contact us now to see if we can get you a better deal!
Debt Consolidation
We have been asked many times by our clients whether it is better to consolidate your short term consumer loans into the one mortgage loan over a longer term or simply pay out the shorter term of the consumer facilities with a higher monthly cost? In most cases a consumer debt over a much shorter term will cost you much less in overall interest than a longer term mortgage loan for the same amount of money albeit at a lower interest rate.
For example: $20,000 Personal Loan over 5 Year Term @ 10% Interest Rate
Vs: $20,000 Mortgage Loan over 25 Year Term @ 7% Interest Rate:
In the mortgage scenario, there is a significant reduction in your monthly payments saving you $303.53 per month! This is $3,642.36 cash back into your household budget each year. However, you are simply deferring the debt over a longer period of time, and end up paying an extra $16,911 in interest over the life of the loan. The higher the rate and the shorter the term, the better the cash flow savings can be! Contact us now for full assessment of how this can benefit you.
