For many investors – how they pay for their deposits on investment properties is considered an afterthought, something which will not impact their long term finance or investing strategy. This can leave investors with less effective borrowing structures which can reduce their borrowing capacity and tax effectiveness. The options for how to pay for deposits [...]
It may be well known by our clients at Precision Funding – but the average investor is not aware that they can potentially increase their long term borrowing capacity by over 100% by utilising a diversified lending structure. This is a common discussion I have with first time investors, which isn’t talked about in [...]
One of the key components for understanding structuring the finance for an investment portfolio is to understand the difference between interest only and principal and interest repayments for your loans. Choosing the right repayment type will be fundamental to ensuring you have the most efficient finance setup, to maximise your borrowing capacity, reduce personal debt [...]
Minimising costs is great, we should all do it. Sometimes however in saving as much as possible, we spite our long term potential by focussing too much on the short benefits. LMI is no exception – it can be both a tool and an unnecessary cost, dependent on the situation and how you utilise it [...]
One of the most common questions early investors ask the team at Precision Funding is: “What sort of property should I buy/What should my strategy be?” In many cases it can be the first question they ask – but cannot be accurately answered without first knowing something far more important. It’s hard to plan a [...]
Lease Doc Commercial Loans I've mentioned this type of product a few times and find that quite a few investors aren't aware that it exists, or how exactly it works. In the environment that APRA has created, this is can be a handy pathway for investors who have substantial equity but no capacity to borrow [...]
Over the last two months the Australian residential lending markets have been under substantial changes, with shifts in lender policies and interest rates. The Australian Prudential Regulation Authority (APRA) has been responsible for applying pressure on lenders to try limit their investment lending growth through the higher stress testing of debt calculations, increases in deposit [...]
Sweat Equity - Expanding your portfolio through Renovations A common issue that a lot of early investors can find in their starting their investing journey is a lack of equity to draw to make their second, third (and so on) purchases. The standard options for those early investors are either: Save for their next deposit [...]
