Building an investment portfolio

Building wealth by any means is appealing to all, but building wealth through investing in property has always been a popular and accepted way of increasing one’s wealth.

However, many people still incorrectly believe they have to be millionaires in order to become a successful property investor. In actual fact, this isn’t the case! Your last name doesn’t have to be “Gates” or “Jobs” in order to start and grow a property investment portfolio.

Getting it Right

One of the best ways to build a successful property investment portfolio is to ensure the investment loan you are in not only boasts an incredibly sharp rate, but is the right product for your needs.

At Clarence Street Mortgages, our mortgage brokers can help you find the best mortgage for your needs – both now and into the future. As your portfolio changes or grows, your broker can make sure that you still have the right loan for your evolving situations.

Our mortgage brokers are professionals who establish long-term relationships with a variety of lenders. These professionals are then able to negotiate interest rates and loan structuring for you.

Which is the Right Loan Type for you?

There are many types of loans available to choose from when you're investing in property. The right loan will preferably be the perfect match for your unique situation; and will depend upon your personal finances. Here are the types of loans that you are likely to encounter when you're looking for a way to fund your investments:

  • Interest-only loans allow you to keep your costs down over the life of the loan. You'll only be paying interest, and people who rent out a property during the loan term can stand to gain substantial amounts during the life of the loan. However, the amount due on the property must be paid in full at the end of the loan term. You do have the option to sell the property at that point, and a strong real estate market can leave you with a sizable profit.
  • A variable-rate loan lets you pay off the mortgage during the life of the loan. This lets you earn more when you pay off the property, but the variable feature of the interest means that you could face bigger monthly repayments in the future.
  • A fixed-rate loan lets you budget the amount that you put toward your investment each month. You'll still own the property once the mortgage has been paid off.

Loans give you the opportunity to invest in property without having the financial resources readily available to make the purchase. However, maintaining a high rate of return on your investment is a matter of getting the best rate and choosing the right type of loan. Consult with one of our mortgage brokers to determine how you can become a successful property investor by using loans. Visit us at www.clarencestreetmortgages.com.au or give us a call on 02 9299 7044.

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