Funding Your First Investment Property
Entering the world of property investment can be an exciting time as often it is a new venture that comes with many risks and rewards.
Building assets and accumulating wealth is one of the benefits associated with real estate investment and if you take the right approach, you can mitigate the hazards.
One way to be strategically smart in your decisions is to secure a financial agreement that will serve your long term goals.
A mortgage broker can help you navigate the many available options on the market to ensure you sign up with favourable terms.
First-time investors often use the equity in a principal place of residence (PPR) as additional security for their investment property purchase as this decreases the size of the deposit required.
Cross-collateralisation is also often used and is the use of two or more properties to secure a single loan - in this case the PPR and the investment property.
Advantages of cross-collateralisation include increased borrowing power, higher loan to value ratio, less paperwork and reduced fees and charges.
Planning and targeted advice can make a real difference in the success of your first real estate investment.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.