Financial freedom is not a dream, it is a choice.
Take a giant leap towards living the life you want.
If your goal is being financially free – owning your own house outright, not having to work, and living off passive income that you don’t have to work for – then property can be an excellent method of achieving this goal.
Many people go into property and property investing without a financial goal in mind. They simply haven’t got a firm idea of where they want to end up financially. Creating a financial goal from the outset is perhaps the most important step.
There are many different strategies when investing in property and so many different ways that you can invest; buy and hold, invest in cash-flow, invest in growth, renovate, subdivide, develop, or flip houses, among others.
There are very few people who actually follow through and achieve financial independence. This is where Australian Mortgage Corporation comes in. We can help you along every step to achieve your property goals.
WHAT TO CONSIDER WHEN
BUYING AN INVESTMENT PROPERTY
Research and having the right people to help you are the keys to investing in property. For most people the idea of buying an investment property is very appealing, but there are many hurdles to overcome.
Your borrowing power
It’s easy to think you have lots of equity, but will the loan be serviced? Find out how much you can borrow with our calculator.
The loan structure you need
The type of property you want
Your investment purpose
Your existing loan
Your next investment
HOW TO FIND THE
In Australia, there are generally three main ways to source and investment property. Whichever method best suits you, we can refer you to trusted partners that can assist you in sourcing the right property. We have negotiated preferential rates with these professionals on your behalf.
REAL ESTATE AGENT
Their commission is included in the price. Hence, as a buyer, you are paying this fee. Nowadays, most people will go online to do some preliminary research on availability and price. This is usually followed up by going along to open houses or auctions to try and compete against other (mostly unseen) buyers.
Bear in mind that many times the property is advertised online because it cannot be sold through to Buyer’s Agents, professional investors, or pre-qualified motivated buyers.
This is very much the “Sunday Driver” approach to property investment. It gives you an inaccurate picture of the quality of investment stock, the area, or comparable properties elsewhere. Other key metrics, like demographics, that serious investors track, are also usually absent. As an investor you ought to look for as much information about where you are buying, as what it is that you are buying.
Buyer’s agents are like Real Estate Agents, only that instead of representing the Vendor, such as Real Estate Agents are legally obliged to do, they represent you, the Buyer. A good Buyer’s Agent will personally specialise in about three or four suburbs only and will secure for you value based property before it hits the market for general sale.
They should be extremely knowledgeable about particular suburbs, prices, planning issues and potential growth. A Buyer’s Agent negotiates a purchase on your behalf and ensures that you never overpay for a property. Their standard fee is 2%. For the right ones, this is more than recouped by how much work and hassle they save you, as well as what you don’t overpay on a purchase price.
They work on your behalf and deal directly with developers to secure you premium properties from quality developers. Quality stock and return on customer’s investment are paramount for Research Houses. The best ones do not charge you, the Buyer, anything for their service. They charge a fee to the developer. They have a long-term view for the investor’s growing portfolio and depend on future opportunities to invest with them in the future.
Research Houses usually have entire departments dedicated to researching property and picking particular projects for clients that will deliver value, growth and rental stability over longer periods.
HOW TO USE
For most Australians their goal in life has been to pay off their own home loan as quickly as possible, and only then start looking at investing in property. As property prices increase, this becomes harder and harder and the goal of buying an investment property gets further and further away.
The requirement to cobble together a 20% deposit for a property, and also enough cash to afford stamp duty, means that many have already unnecessarily written off their chances of financial independence before they have even started. However, by securing the right advice and agreeing a strategy, an investment property may be possible much sooner than you think.
ARE THERE ANY TAX BENEFITS?
CAN IT HELP ME TO PAY OFF MY MORTGAGE EARLIER?
HOW TO FIND PROPERTY
Where will you source the property that will return the value you need over time?
HOW INVESTMENT LOANS WORK
If you are thinking about investing, we can help you to find the most suitable home loan for an investment property. We will get you a mortgage that best suits your tax efficiency, investment needs and wealth creation goals.
Our aim in Australian Mortgage Corporation is to have you as a long-term client, and so we will go through all of the different scenarios with you and advise you on the product best suited to your needs and ambitions.
GETTING A BETTER RATE
RESTRUCTURING YOUR LOAN
USING DEPOSIT BONDS
INVESTING IN YOUR FUTURE
Annie is an occupational therapist with no dependents. She has a $450,000 mortgage on her home and only 15 years left before she calculates she can retire.
The problem is that her mortgage is due to continue for another 23 years, i.e. 8 years into retirement. Her Super balance is low due to many years of working overseas and self-employed. She basically feels that she can’t afford to retire early.
Through a low-risk, diversified property investment strategy, she has amassed just over $300,000 in equity after just 3 years in investment property. Each property has been cash-flow positive and hence hasn’t required any ‘out-of-pocket’ ongoing expenses.
She is now hopeful of retiring in 5 years, paying off her home loan in full and continuing to invest in property.
REFER A FRIEND
AND GET $500
When you refer a friend, and they subsequently do business with us, you will receive $500 as a thank you.
We respect your confidentiality and will never disclose your information to a third party. We comply with all the Privacy Laws of Australia. Should you have any queries with regards to this, please do not hesitate to contact us.
THE BEST CALCULATOR IS YOUR BROKER
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TO KNOW WHAT'S POSSIBLE