Financial advice for investment in property
Many financial aspects are crucial to property investing from wealth creation and retirement planning to tax benefits and financing safeguarding. There are many financial factors to consider, and with your investment, a few small tweaks can drive you forward.
Reorganize debt with high interest
If you have a personal loan or credit card debt, typically these loans will attract the highest interest rate from any of your debts. Look into consolidating the debt so that you can pay it down as soon as possible to chip off high-interest debts efficiently.
Hunt about for financing
Of course, being a loyal customer is nice, but it may decrease your ability to borrow. Make sure that when you're looking for money, you keep shopping around. In fact, getting all your loans with one lender will result in your properties being evaluated as a whole portfolio, rather than individually.
Do not cross-collateralise properties
Cross-collateralising your assets can cause huge headaches, particularly if your property's value increases, and you want to draw some of this equity from the properties. Cross-collateralisation can also be a concern if you want to sell a property as you may find it difficult to get the whole mortgage released from the lender.
Monitor security on a regular basis
The opportunity to spend more and broaden your investments can be limited by leaving too much leverage with your lenders. They would like as much support as possible from the lenders ' point of view, but it is not entirely necessary. Make sure that you regularly review your property values, especially as markets are growing rapidly. This can give you the ability to remove some of your investment properties or other assets from your security.
Find a credit line or redraw facility
Considering the above phase on debt consolidation, it may seem counter-intuitive, but a credit line or redraw facility is a great way to save cash for a rainy day. Not only is it a good plan, but it is usually much lower than the interest rate on personal loans or credit cards on a credit or redraw basis.
Use intelligent frameworks for your portfolio of loans
Make sure that your loans are structured in such a way that you can be flexible and maximise your deductions. You will need to speak to your advisor, financial advisors and accountants to ensure that your loans represent your priorities and provide flexibility.
Access to finance is crucial in property investment to keep your portfolio growing and living the lifestyle you want. As always, be sure to talk to your trusted financial and legal advisers before making any major changes to your finances.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle & Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or www.nobullrealestate.com.au