Banks make all the rules when it comes to borrowing money, but that doesn't mean you can't use the rules to your advantage.
At First Avenue Finance, we focus on helping our clients create wealth through property investment, so we wanted to share our top 3 actions of successful property investors:
Successful investors rarely use their own money to buy property:
Generally, investors use the equity in a property they already own, rental income they receive and tax advantages to help pay for their investments. If you have equity in your own home (ie. your home is worth more money than what you owe on it) then you may be in a position to invest. The use of equity to purchase property is one of the biggest advantages you have for property investment, so if you are not sure how it all works, we can walk you through the process.
Successful investors use a finance expert to source their funds to purchase property.
If you go into ABC Bank to ask for a loan they can only offer you ABC Bank products, and if their rules say 'no', they won’t. Simple. An Investment savvy mortgage broker (ah 'em) knows how to structure the loan to spread lending and to mitigate risk. When entering the property game, it is essential you get the right advice.
Successful investors have a plan and a system that allows them to keep buying more property.
This involves knowing (or having a broker tell them) how the different banks:
- Rate them as customers based on their current circumstances
- View their current assets and liabilities
- Assess different property types and purchase terms
We can tell you exactly what the different banks think of you, so you won’t have to ask them yourself.
So, if you are planning on buying an investment property or setting up a multi-property portfolio you should have an intimate knowledge of the 3 points above.
If not, it's time you did and we can help. Complete the form below or Call us today to discuss how we can assist helping you start your investment journey today!