Loan structuring is a fantastic strategy that people often overlook. Investors do not realise that it can save thousands of dollars throughout the journey of their property investment. Here you will read about some of the most useful strategies as well as structures that will benefit the investors. But it is also advisable to take professional help before investing as every individual have different circumstances, and they need the solution accordingly. An investment savvy finance strategist in Brisbane can improve your borrowing options.
Borrow the maximum and use an offset
It is usually the best approach to borrow the maximum amount of property and deposit all your extra cash in an offset account. Make sure that you can access the account whenever you want. This let you collect all additional money in an offset account instead of decreasing the principal of the loan. This allows you to keep the loan principal and that might be crucial for tax benefits in future.
Strictly avoid cross-securitisation
When a lender uses more than one property as loan security, it’s called cross-securitisation. A perfect example of cross-securitisation is where two properties – both your home and investment property has been used to secure your investment loan. This process ties you to a specific lender and minimises your flexibility. If you can secure all your properties independently, you get more flexibility.
Diversify your lenders where possible
Sometimes, your lender knows too much about you and consequently, has too much control over your personal and business investments in Brisbane. There are numerous advantages of diversifying your lenders. Property valuation processes usually vary from bank to bank, so staying in relationship with more than one bank will facilitate you to maximise the borrowable equity.
Do not mix Personal relation with Professionalism
If you are a self-employed investor, having your private and business banking with the one bank can be a big mistake. It might seem convenient, but the problem with this situation is that your bank knows too much about you and thus, has too much control. But if you don’t mix your business banking and your personal banking, it will be easy to control the amount of information each side has. It can be very beneficial, especially if there is a change in your financial condition.
Get professional help
As you need to take care of so many financial matters, it always makes sense to seek professional advice in Brisbane when looking for loans. By doing it, you can make sure that you are starting the journey of your property investment in the best possible manner. With correct professional advice and support, you are most likely to get a smooth experience regarding property investment and might enjoy many financial advantages for the long-term. An expert can help you understand your financial goals, purpose of your wealth, aspirations and needs, priorities and so on. You can get a modified solution for your various requirements.