Mortgage Investments

We structure your finance to your best advantage.

What not to do!

This is the most likely scenario (if you approach a Bank or an average Broker)

The Bank will combine (cross colaterise) both assets - thus the one Bank holds both Titles.

Suppose your home is worth:	$350,000
You have a Mortgage of:		$100,000
Buying an Investment property of:	$200,000
Need a 100% mortgage of (Purchase and Costs):		$220,000
Your Total Assets:	$550,000
Your Total Loans:		$320,000
LVR (Loan to Value Ratio - $320,000/ $550,000):	58%

Providing that you demonstrate that you can service the loan, the Bank will lend you the money.

Warning 1

Warning 2

To illustrate this point:

Suppose you were sold the property for $200,000, but is only worth $150,000. Does this ring a bell with some stories you have seen on TV or in the Newspapers?!?

Lets compare the following to the above example:

Suppose your home is worth:	$350,000
You have a Mortgage of:		$100,000
Buying an Investment property for $200,000:	$150,000
Need a 100% mortgage of (Purchase and Costs):		$220,000
Your Total Assets:	$500,000
Your Total Loans:		$320,000
LVR (Loan to Value Ratio - $320,000/ $500,000): As long as it is below 80%, Bank would still provide the loan.	64%

Warning 3

What do we advise you to do?!?

Separate your home from your investment property ! "Security is No 1!"

We show you, how to separate the two properties, and also increase your "Safety", if something happens to you (ie; you lose your job, you get sick, etc) and you can not earn money for a while - your home will still be safe. We provide you with a "Safety Belt".

Suppose that you have an "Ordinary Mortgage", and you lose a job temporarily and can not meet mortgage repayments - You could lose your home.

We believe that you should have available a "Draw Down" facility against your own mortgage for safety reasons alone, whether you take an investment or not.

So how is that done?

With an "Equity Loan" you should also be able to repay your loan more quickly, without paying extra. (See the example "Reduce your Loan Term".)

Key Points to Note:

1: "Safety is Number 1" Now you can take a "deposit" of say 20% from your home loan, and use another bank to lend you the other 80% for the investment property. This way the two properties are totally separated, but your deposit is still calculated on the investment property for Tax purposes.

2: You use the "Interest Only" loan from the other lender for the investment property.

3: You can also use say, $50,000, and put it into an "investment fund of 10 - 20%, which would allow you to pay your mortgage off quicker.

4: Time difference on rent received and interest paid helps to pay your home mortgage off more quickly.

5: You can always chose the best lender at the time of a new purchase. (you are not tied to the Bank that holds your mortgage)

6: There are 6 other "major" reasons and a number of other minor reasons why you should separate security, which we will show you at the time of an appointment.

7: We can recommend to you a specialist in the property market, who can best advise where to purchase an investment property.

8: We show you how you can protect yourself with insurance in the case where your tenant does not pay rent.

9: By analysing your financial situation, we show you how to utilise the best investment strategy (The recommendation of a Financial Planner) - through exposure to other investment vehicles, etc.

To understand more about how we may help you, please email us to request a Free, No Obligation Consultation. (Note: Please don't forget to include your contact details.)

Alternately, please click here to submit an Online Inquiry Form.