Residential investment

When investing in property, one would be expecting a return on those funds allocated to the asset; in this case a property. The returns can take the form of rental income, tax deductions to offset income; and finally you would hope for a capital gain when selling the asset.

When you’re trying to secure finance for an investment property, it’s important to keep a few simple rules in mind to make sure you get the best deal possible and will be able to afford the repayments, come what may.

If you’re thinking about purchasing an investment property, it’s important to manage the risks adequately.

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For example, you shouldn’t rely on rental returns as a guaranteed income to meet loan repayments, as there are times when a property may be vacant or hard to fill immediately and some months the rental return on a property may be diminished by maintenance costs.

Progressive Loans will help a borrower find the right product, so that he or she can afford the repayments.
Most investors will already have put some thought into where they would like to invest and will have an approximate price-range in mind. We can use our expert knowledge to sense-check and flesh out your plans.

With access to property data and trend analyses like RP Data’s, we can pull property reports for you, detailing how the area has performed in the past as an investment, the average median house price or rate of return and how much the property values have increased over the past five or six years. These are details that investors generally can’t access.

Lending for an investment loan has its own set of rules and regulations that are monitored by government authorities. Being such, Lenders are at times restricted as to how much they can allocate to their investment lending portfolios. Progressive Loans monitors this, and can advise you of which lenders can assist yourself with an investment loan.

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