Investor Home Loans | Best Rates In Perth | Westend Finance
Owning an investment property can provide many benefits, but you need to be sure of what you want to achieve through investing in property.
When investing in property it’s important to have a plan to suit your financial needs today and into the future. We believe that using property can be a secure low risk option to create wealth, and this is only true with the right advice and a well-executed plan.
“Someone’s sitting in the shade today because someone planted a tree a long time ago.” To quote Warren Buffet, he understands that preparation and planning now can ensure you reap the benefits later.
Investor Home Loans | Best Rates In Perth | Westend Finance
Owning an investment property can provide many benefits, but you need to be sure of what you want to achieve through investing in property.
When investing in property it’s important to have a plan to suit your financial needs today and into the future. We believe that using property can be a secure low risk option to create wealth, and this is only true with the right advice and a well-executed plan.
“Someone’s sitting in the shade today because someone planted a tree a long time ago.” To quote Warren Buffet, he understands that preparation and planning now can ensure you reap the benefits later.
What Is Investment Property?
Investment property is real estate that’s purchased to earn a rental income. Buying an investment property can be short-term or a long-term proposition, and this really depends on your plan. You could be investing for a strong rental yield, or you could be seeking future growth for profit once the property is sold, or it could be a mix of both.
investment properties can be purchased in many different ways, you can purchase as an individual, partnership, company, or possibly through a trust. Whatever your plan is we can help you take the next step, and if you don’t have a plan, we can provide advice and assist you with the ideal structure suited to you as well as what a Bank prefers.
Investment Loan – Is it Right?
There are many reasons to buy an investment property and you need to know exactly why you are investing, you must always have a why when you do something. We have listed some of the “whys” most of our clients say are the reasons they are buying an investment property:
- Boost monthly cash flow – (positive geared property)
- Long-term financial security
- Possibility of accessing tax advantages (negative geared property)
- Diversification
- Passive income
- Option to leverage funds using equity to expand your investment portfolio
- Wealth creation
- Strong rental yield
Investment home loans include purchasing an established house, building a new home, or maybe renovating a property so you can make a profit when you sell. Investment properties are not only for residential properties, but they can also be used for commercial office spaces, industrial warehouses, or retail space. There really are so many options available on the market.
Make the Best Call
If you’re considering getting an investment home loan, you should keep in mind that what you get depends a lot on your specific circumstances, whether or not you prefer a variable rate, or a fixed rate. Your strategy may be to maximise cashflow so an interest only loan would be a better payment type for your needs. There are so many options but really it comes back to you and what your goals are. We need to know exactly what your plan is so we can implement a loan and strategy to suit the property you’re buying.
Working with experts like us allows you to find the best options. With our calculator, for example, you can calculate your payments based on an estimated interest rate, which will help you understand how much you’d have to pay.
Investment Home Loans
An investment home loan is becoming very popular way to enter the property market in Australia. For many people we talk to they are moving away from the idea of living in a home they own, and they are now planning on investing. They would prefer to rent in a location that would ordinarily be outside of their budget to purchase as their principal place of residence and invest elsewhere. These people are choosing lifestyle over the Australian dream of owning a home to live in, and this way they still get exposure to the property market through investing in real estate.
There are many important things to consider when you start your journey into buying an investment property. Some of the guiding principles many of our investment clients work to when investing in real estate are.
- The location of the property you’re buying
- What property you’re buying
- Costs of building, buying, owning, and maintaining a property
- Principal and interest repayments
- Entry and exit fees
- Rental yields
- Vacancy rates
- Loan to value ratio
A heavy amount of research and planning is recommended to ensure you are buying the right property to match your investment plan. Don’t rush your decision when investing, take the right steps to make sure you will achieve what you set out to achieve.
Interest Repayments
When you setup an investment home loan your repayments are typically structured as interest only, this means you are not reducing the principal balance on your home loan, and you pay the Bank their interest instalment only. Of course, this payment structure does depend on your circumstances, and it may not always be the best type of payment for you. Often this payment type is what an investor prefers as it can maximise their cashflow. Banks will normally limit the interest only period to 5 years although some may offer 10 years. However, there will come a time when the Bank does not extend an interest only period and they will ask for their money to be repaid. Making sure your payment type and the loan structure is correct upfront is very important, and often this depends on your investment plan.
Banks will consider various factors in your application, and choosing the perfect investment home loan product can be a confusing process that presents challenges.
Nonetheless, we’re here to make everything easier. We work with banks and other financial institutions, and as brokers, we’ll do our best to get you the right loan product to meet your needs.
Comparison Rate
A comparison rate is a useful way to determine which home loan is the best one for you. It allows you to look at what different lenders offer you and identify what you should pick.
Instead of considering interest rates only, the comparison rate lets you contrast various factors that you may otherwise miss. The following are some of the aspects that this rate takes into account:
- Loan term
- Repayment frequency
- Loan amount
- Interest rate
- Charges and fees
We Give You More Options
Our company operates independently. Therefore, we have access to a wide range of products. We can find fantastic alternatives on the market, and we’ll try to match our suggestions to your needs.
If you want a home loan with a specific interest rate, we’ll go out of our way to find options that suit you. Furthermore, we work for you, not banks or lenders. Therefore, regardless of the nature of the home loan you want, we’ll always offer unbiased advice.
We Don’t Make Empty Promises
Our company doesn’t only give you top suggestions to handle your home loan account and manage principal and interest repayments, your financial situation, investment strategy, and interest-only repayments. What makes us truly stand out from the crowd is that we offer brutally honest advice.
We only offer total transparency, full commitment, and honesty when we work with clients. If you tell us you’re looking for a fixed rate home loan, we’ll find you the best alternatives and offer the most suitable advice.
In many cases, the interest rate for your home loan depends on different factors, such as the property value, loan amount, and your personal financial history. Therefore, you need to make sure that the professionals you work with offer you truthful advice and effective solutions to achieve your goal.
We Never Give Up
Our goal is to make the home loan process smooth, and we want to make sure you have a positive experience. We know there are a lot of things to consider, such as repayments, interest rates, property value, deposits, serviceability, and more. However, we’re here to help you through every step to get you the investment property you want!
Apply Now
You should know by now whether or not you want to apply for an investment home loan. With the help of experienced brokers like us, the process will be more enjoyable. Even so, there are a few steps you need to go through before you get your home loan. Here’s what the process looks like
Steps
Our company has been in this industry for a long time, so we know how different things can be depending on the client.
Factors like loan amount, property value, comparison rate, interest-only repayments, and whether or not you offer an offset account can all play a role in the loan product and Bank we recommend to you. Thus, we ask clients to go through a series of stages if they want to work with us.
Fill Out the Enquiry
Firstly, we want to know more about you. Our website offers an enquiry form that we would love for you to use so we can understand a bit more about what you want to achieve . Some people prefer to have a discussion by phone which is perfectly fine. Please gives us a call or we can schedule a call with you at a time that is suitable.
Wait for Our Call
Once we have all the information we need about you, we’ll schedule a call. Once we get in touch, our primary concern will be understanding the specifics you want for your home loan.
As brokers, we work for you. Therefore, we want to make sure your getting the loan product and dealing with the Bank suited to what you are planning to achieve.
Investment home loan rates can make a significant difference in your finances, especially if you want to save money and build your future. We know the importance of being debt-free, and we want to help you by giving you the best alternatives we can find.
Let’s Begin
After we’ve had the opportunity to discuss your application and your overall plan, we can book an appointment to meet. If you prefer to complete the formalities electronically, we can also accommodate this method.
Some Convenient Options
Oftentimes, investors try using a conventional mortgage to buy one-to-four-units properties because they think this is the most convenient alternative. They usually believe that this way, they’ll get the lowest fees and rates.
However, as was mentioned before, sometimes getting the lowest fees is not the best option. Instead, you should pick an alternative that allows you to comfortably pay for the interest rate while also benefitting your financial situation in the long run.
Therefore, intelligent investors often rely on an offset account and the comparison rate to evaluate all the options they have.
One of the most common alternatives is to go with private lenders, who specialise in this process and may offer a better interest rate for your home loan.
Some money lenders also offer investors specific benefits depending on the type of building they want to invest in. If you’re interested in commercial properties such as medical office towers, apartment complexes, or office towers, working with private lenders could be a convenient alternative.
The home loan terms that private lenders offer are often different from the ones you may get if you work with banks, credit unions, or financial institutions. However, our job as brokers is to help you identify the best options.
Considerations
On some occasions, qualifying for a home loan may be more challenging than other processes. Many lenders consider properties to be risky investments. Therefore, they’re very careful when they pick to who they’re giving money.
When you try to get a home loan, lenders will want to make sure that you earn enough to cover the payments even in the worst-case scenario. If your tenant doesn’t pay, for example, you’ll have to take care of the fees.
Investing for a personal loan means you may have to put in up to three per cent of the property value. However, with an investment home loan, you may have to pay from 20 to 30%.
To get the best interest rate, you should work with professional brokers like us. We evaluate all the options on the market and tell you which ones may be convenient for your financial future. We’ll never lie or give you dishonest advice, so our transparency and commitment are two of our most powerful advantages compared to other companies.
Repayment Calculator
Our calculator is a handy tool if you want to know how much interest rate you’d pay. Fill out the necessary information and take a look at the possible payments.
Frequently Asked Questions
A home loan for investors is an amount of money you get to buy or build a property. Unlike personal properties, when you get this type of loan, you’re supposed to have a business plan since you want to earn revenue from it in the future.
Obtaining loans for an investment property is a challenging and time-consuming process since lenders consider real estate to be a risky industry. However, if you work with experts like us, it’ll be easier!
Property is one of the most popular investment alternatives since its price is more stable than other options, for example, stocks, bonds, and cryptocurrencies.
Even so, committing to paying for a specific interest rate per month is a daunting task. You may need to work with professionals to understand the documents you need for the application process. Furthermore, expert help can help you forget all stress and focus on signing the papers and making the payments.
There is no single investment alternative that’s right for everyone. It depends on your financial goals, current possibilities, personal history, and more.
If you’re unsure of what’s the best investment alternative for you, working alongside professionals could be a good idea. Financial experts can guide you, offer options that adapt to your needs, and help you ensure you’re making the right call.
Choosing between investment alternatives requires time since you have to examine different factors and determine what you want on a long-term basis.
Nonetheless, when you work with experts like us, everything is much easier. We’ll answer any question you have and help you find the most convenient offers.
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