Financing Your Property: The Foundation of Successful Property Investment in Australia

October 2nd, 2023

Finance is the essential foundation for any property purchase or investment. At Empire 8 Property, we know securing the optimal loan or structure is key to setting your portfolio up for success. In this comprehensive guide, we’ll demystify property funding by breaking down financing options, busting myths, and providing tips for putting the best plan in place.


The Power of Leverage: Banks as Your Partners


While you put down a chunk, usually 10-25% of the value, banks supply the bulk of funds when investing in property. This leverage through the bank’s financing lets you amplify returns, especially with investment properties where it’s known as “good debt.” But why is funding so crucial to get right? Because the ideal financing should expand your options, not restrict them. The perfect loan provides flexibility to capitalize on future potential, not handcuff you.


The Right Financial Product for Your Investment


To make certain that finance operates to your advantage, it’s crucial to select the appropriate financial product that matches your investment objectives. Not all financial institutions provide identical terms and conditions, and they will not necessarily accommodate your distinct requirements unless you proactively seek out the most suitable option.


Dispelling the Myth of Rejection


A common misconception is that you must finance through your existing bank or the one mainstream provider you’re familiar with. Many investors assume if that primary bank declines their application, they’re out of luck.


In reality, just because one institution says no doesn’t mean you can’t get funding. Exploring multiple banks and products opens up possibilities tailored to your situation. This is where a top-notch mortgage broker proves invaluable.


Explore Multiple Avenues: Engage a Mortgage Broker


Brokers have specialized expertise navigating different loans and lenders for your needs. While banks treat you like a number, a broker provides personalized guidance. They shop on your behalf to find flexible terms that match your investing approach and goals.


These experts are well-versed in the intricacies of property financing and have the experience to evaluate your application and profile. They can recommend two or three banks that may offer favorable terms for your specific needs. By enlisting their help, you tap into their knowledge and leverage their expertise to secure the loan that suits you best.


A broker works harder to get you approved, exploring alternative avenues if the first option doesn’t pan out. The right broker unlocks your potential through optimal financing.


Choose a Dedicated Mortgage Broker


It’s essential to find a mortgage broker who goes the extra mile for you. Some brokers may simply file your application with a single bank and collect their commission. However, the right mortgage broker will work tirelessly to find the most favorable terms and conditions for your loan. If one bank doesn’t work, they will explore other options until they secure the financing you need.


Build Relationships in Real Estate


Building relationships is pivotal in real estate. Connecting with pros like mortgage brokers, advisors, and property managers pays dividends. These bonds offer you valuable intel, prime opportunities, and insider sector knowledge. Collaborating closely with specialists empowers you to make enlightened choices that serve your interests long-term. Surround yourself with experts who have your back.


Don’t Let Rejection Halt Your Dreams


Remember that a bank’s rejection doesn’t have to be the end of your property investment journey. Seek the assistance of a dedicated mortgage broker who will work tirelessly on your behalf. Their expertise and willingness to explore various options can lead to better outcomes than you might expect.


So, instead of letting a single rejection from a bank discourage you, take the proactive approach. Consult with a reputable mortgage broker, build relationships in the real estate industry, and watch your property investment dreams become a reality.


Empire 8 Property believes in your property investment success, and we’re here to guide you every step of the way. Don’t let financing obstacles hold you back – reach out to us today, and let’s turn your property dreams into a thriving reality.