Why property still remains a great investment choice

ALTHOUGH interest rates remain at attractive lows and government incentives are designed to entice buyers and investors, people are still somewhat spooked.

Property investment is an ideal way to improve finances and establish equity over time.

ALTHOUGH interest rates remain at attractive lows and government incentives are designed to entice buyers and investors, people are still somewhat spooked.

The inevitable stabilising of house prices has arrived, with significant value reversals in some areas, while tightened lending regulations are also taking their toll on investors. Despite the doom and gloom, property still remains a great investment choice and a reliable means of establishing equity and long-term financial freedom. 

Property investment is an ideal way to improve finances and establish equity over time. There are lots of different advantages, and with the expert assistance of a qualified Lending Specialist, you can tailor a loan to your personal needs. Homeowners are the big winners here, with the benefits of additional property investment including:

• A stable property market generates fixed returns for an investor.
• Regular rental income can generate surplus finances.
• Taxes, council rates, fees and charges can be claimed back at tax time.
• Existing property equity enables you to secure more investment loan opportunities.

It’s important to retain a financial buffer for times when the property is not tenanted, improvements are required or re-selling the property is delayed.

Investors and lenders need to be savvy with the choices they make to ensure profitability. In the current financial climate, there are ways around the dilemma that can greatly improve your chances of investment loan approval. Factors include:

• High yielding properties generating 5.5 per cent profit or more annually, will be looked on favourably by your lender.
• High growth, ‘lender approved’ locations offer more stable economic factors and growth signals favoured by lenders.
• The property purchase price needs to reflect your ability to make repayments. Lenders are attracted to modestly priced homes suitable for regular wage-earning Australians.

Among lenders in Australia, Mortgage House offers attractive loan products as an alternative to those of the major banks. In times when consumers feel alienated from the very people they need to contact, Mortgage House Lending Specialists bridge the gap by establishing a genuine relationship and thorough property investment plan.

The loan product you choose should cover all bases and provide flexibility as repayments progress and the principal amount owing reduces. Home loan options include:

• First home buyer
• Second home buyer
• Investor
• Refinancer
• Construction
• Renovation
• Relocation
• Self-employed and low doc loans

The fine line between profit and loss needs to be clearly demarcated, allowing you to move forward with confidence. There is a lot to learn, with tremendous resources available online, but nothing beats face-to-face time with an experienced lending expert. A Mortgage House Lending Specialist, for example, can help you investigate the full range of loan options, including:

Fixed rate: Interest and repayment rates remain constant for a fixed time.

Variable rate: Interest rates fluctuate and additional repayments can be made.

Toggle offset: Money can be shifted between fixed and variable portions for interest savings.

Portable loan: Take your present loan to your new home instead of entering a new contract.

Split home loan: Allows you to control the fixed and variable portions of your loan.

Interest-only loan: Useful as an investment strategy or for entering into home ownership.

Construction loan: Stagger monetary drawdowns and save on interest charges.

Bridging loan: Ideal when money is tight and you are balancing several mortgages.

The best lenders provide opportunities, remove obstacles, discover solutions and assist you in realising your home ownership and investment potential. The game has changed, but property ownership is still the great Australian dream worth chasing, and by choosing the appropriate lender and mortgage product, property still remains a great investment choice.

Originally published as Why property still remains a great investment choice