Property Investment

In short – yes you can. However, when it comes to building a staple of properties, people cap out because of their income level vs the debt level. Each property acquisition makes it more challenging to get the next property as you’re accumulating more debt. Our team of experts work with you to develop an investment property strategy that will allow you to build your property portfolio without being capped out.

When investing in property, going through the same lender for your loans might seem logical. However, it might not be the best option for you. Borrowing from the same lender for multiple properties may mean you’re entitled to an additional interest rate discount from that lender as you are borrowing more money in total. That makes you a more attractive proposition for that lender. On the flip side, borrowing from a different lender minimises your risk. If something goes wrong with one property, you can sell another one quickly, and pay off the loan relating to that property without it compromising your other loans. An Inovayt Finance professional will find the best loan structure for your expanding portfolio.

Again, this will depend on your financial goals which our expert team can assist with. When it comes to positive and negative gearing, it’s crucial you have a solid understanding of each. Negative gearing is a tax benefit you can claim if your borrowing costs are higher than the money you’ve made from an investment property. These losses can be claimed against your total income and increase your tax return and the income on your investment. Positive gearing, on the other hand, refers to when the income from your investment property exceeds the cost of owning the property. It takes into account your loan repayments, interest and all other out of pocket expenses, like rates, water and maintenance costs. Speak to one of our finance professionals to find the strategy that best suits you.