Up to 70-80 per cent of the property investors we speak to are breaking their fixed-term mortgages and changing early. The most common reason for this is poor advice and structuring.
With that in mind, let’s take a closer look at why strategic mortgage structuring is so essential for property investors, and what you can do to improve yours.
What do you want to achieve as a property investor? This should be the first question you ask and answer as your mortgage should be tailored to fit your circumstances and help you to reach your goals.
As an example of how this works, let’s say you’ve bought a property in an area where values aren’t increasing quickly, but where rental returns are high. You’ve also got limited cash flow at the moment and want to build up equity over time. Renovating is an option in the future if you can afford it.
In this situation you may want to structure your mortgage like this:
Your goals and circumstances are unique so your mortgage should be too. Look past interest rates and instead focus on how your finance can help you succeed as a property investor.
Before you lock in a mortgage, you need to fully understand your circumstances, set goals for your property investments and work through a detailed budget. All this information will help you tailor your mortgage.
If this all sounds a bit complicated, don’t stress. Money Empire aims to make mortgages and finance simple so that you get the results you want without the worry and confusion. We take the time to understand your circumstances and your goals to help you create a budget and a detailed plan.
After we’ve run through those details with you we’ll set up a mortgage structure that helps you get the job done. Give us a call today and let’s talk money!