Here’s What Other Investors Say
About Our Services
Danny & Danielle
At last we have found a mortgage broker that cared enough to listen to our particular situation. Not only did BrokerCo negotiate a rate we didn’t see advertised anywhere else…but they saved us time, hassle and money throughout the entire process.
Melinda and Glen
I had been to my bank and spoken to another broker, both of which told me I couldn’t buy the investment property I wanted. Finally, a colleague recommended me to BrokerCo and they made my investment dreams a reality. I can’t wait to buy the next property and I cannot recommend BrokerCo highly enough.
Anthony and Sarah
I have bought multiple homes and have always used the services of BrokerCo. I don’t have time to sort through all the interest rates and I like benefiting from the bank contacts that BrokerCo have. It’s always been an efficient process through my broker.
My friend recommended me to BrokerCo after our interest rate changed with our bank. After refinancing we ended up saving $1322 per month and our new lower rate means we will pay our home loan off sooner. It was a terrific experience!
Tom and Mandy
BrokerCo saved the day for my husband, my mother and I when the purchase of our new home was looking to fall through due to finance issues with another broker. We were so confused with the whole process. It was such a relief to finally sit down with a broker and get the guidance we needed and our loan approved on time. We look forward to continuing our relationship with BrokerCo long into the future. Thanks BrokerCo for making our home ownership dreams a reality. Highly recommend!
Kirsty and Andy
BrokerCo have helped us purchase our first home when a previous broker told us it wouldn’t be possible. Even though the bank made the process difficult our broker pushed every step of the way and made our home ownership dreams come true.
Every successful financial decision begins with a plan and investing in property is no different.
Explore the steps to your first investment property
Step 1 – Have your loan pre-approval in place
Knowing how much you have to spend gives you the confidence to make a calculated offer on your property of choice.
Step 2 – Choose the right property in the right location
Research your chosen suburb by checking all advertised listings in newspapers, the internet and real estate agents. Make sure that you know the price of recently sold comparable properties. Choose an investment property with your head, not with your heart. Sometimes investing in property in another state is a better financial option. Keep informed by reading reports on national property updates and best performing suburbs. Usually capital cities outperform
regional areas, however some coastal options have also seen very good growth.
Step 3 – Make an offer
For properties sold by private treaty you will need to make an offer to the listing real estate agent. Obtain a copy of the contract for sale and organise for your conveyancer/ legal representative to check it. Properties being auctioned may be open to offers prior to the auction date. If you buy at auction you will usually be required to pay a deposit of 10% on auction day. The contract for an auctioned property is unconditional and no cooling off period applies. If bidding at
an auction, make sure that your conveyancer/legal representative has checked the contract and organised pest and building inspections before you bid.
Step 4 – Conveyancer / legal representative
The contract for sale should be given to your conveyancer for advice and checking. The conveyancer will advise you of your cooling off rights (varies from state to state). Once the contract has been signed by both parties and exchanged, the contracts are legally binding. The contract will indicate when the deposit will have to be paid. If no pest and building inspections have been carried out, it is advisable that they are ordered by the conveyancer.
Step 5 – Final loan approval
We will organise loan documents for the balance of the purchase price to be prepared and signed by you.
Step 6 – Insurance
Your lender will require you to organise building insurance (except in the case of strata title properties). Most investors also invest in landlord insurance.
Step 7 – Final inspection
Arrange for a final inspection with the real estate agent. Check for all inclusions in the contract for sale and that they are in working order. Check light switches, power points, air conditioners, exhaust fans, hot water, swimming pool equipment and security system and request copies of all manuals for stove, dishwasher and other relevant inclusions. If your property is interstate perhaps have a
friend inspect it for you or jump on a cheap flight and do it yourself. Costs associated may be claimed with your tax return.
Step 8 – Settlement
Your conveyancer/legal representative will attend to settlement. This is the day on which the balance of the purchase price is paid to the vendor. Stamp duty and lender’s mortgage insurance will also have to be paid. You can collect the keys from the real estate agent once settlement has been advised.
Step 9 – Appoint a property manager
A good property manager will source and retain quality tenants, collect rent, conduct inspections and organise repairs and maintenance on your property. They will provide you with a schedule at the end of the financial year showing rental income, repairs and maintenance and property management
fees for taxation purposes.
It Pays to Research the Costs, Risks and Benefits before you begin.
Choosing The Right Loan for Your Investment is the First Step.
Ideally, investment property loans should be interest only because an interest only investment loan is FULLY tax-deductible. It is usually the best cash flow solution when used with good capital growth. However there are other categories of loans that may be considered.
Interest only loans
With an interest only loan your repayments are set to cover the interest component of your loan only, which allows you to keep your repayments on your investment property to a minimum. Generally, interest only loans are for a maximum five year term (depending on your lender) reverting to a principal and interest loan at the end of the agreed interest only term. However a further interest only loan can be negotiated at this time. The interest on your investment loan is tax deductible, making these types of loans attractive to investors.
Fixed rate loans
These loans are set at a fixed rate for a specified period - usually one to five years. Repayments do not rise or fall with interest fluctuation throughout the specified period. At the end of the term you can lock in another fixed rate, switch to variable or go for a split loan. These loans may have limited features and lack the flexibility of variable loans. There may be early exit fees and limited ability to make extra payments.
Basic or "no frills" loans
These are variable rate loans with a relatively low interest rate. Repayments will rise and fall with interest fluctuations. With these loans, remember to check that the loan conditions will suit your circumstances, particularly the ability to make additional repayments and pay out the term of the loan without a penalty.
Standard variable rate loans
The standard variable rate loan, like a basic or “no frills” loan, offers more flexibility than a fixed rate loan. A standard variable rate loan will often have more features than the basic variable option so the rate may be slightly higher. The extra options (for example a redraw facility, the option to split between fixed and variable, extra repayments and portability) should be taken into account when choosing your type of variable loan. Repayments will vary as interest rates fluctuate.
Line of credit loans
Sometimes known as equity loans, these loans are a great way to access the equity in your home to use for property investment, home renovations or other personal purchases. Repayments on a line of credit loan are determined by the interest rate applicable at that time. If you have sufficient equity in your home, you will need to make a separate application for a line of credit loan if you don’t already have one in place. With this type of loan you have the added advantage of being able to make unlimited deposits as your repayments are not set. Always check the conditions of these loans as they are sometimes more expensive than standard products.
Professional loan packages
These loans are offered to provide an all-inone loan package. They offer interest rate and fee savings on your loan, credit card and transaction accounts and some lenders also waive the annual fees for your credit cards. An annual fee ranging from $120 to $395 is usually applicable on these loans. These packages can also offer amazing flexibility, with some banks willing to waive product switching fees when changing from a variable to a fixed rate or converting a principal and interest loan to an interest only loan. We will provide you with a comparison of various loan options from our panel of lenders to assist you with choosing the right loan for your circumstances.