Investment
Investment
Grow your wealth through property investment
Investing in real estate can be a powerful way to build wealth over time. Taking advantage of good, quality property in a competitive market is crucial and you need to be able to move on the deal when it comes your way. Lifestyle Loans will ensure your finances are in order with the right lender so you can invest in property with confidence.
Frequently Asked Questions
- Long-Term Value: Real estate tends to appreciate over time. As property values rise, your equity grows. This equity can be leveraged for future investments or financial needs.
- Passive Income: Rental properties provide steady cash flow through tenant rent payments. This income can cover mortgage costs and contribute to your overall wealth.
- Diversification: Real estate diversifies your investment portfolio, acting as a buffer against stock market volatility.
- Tax Advantages: Property ownership offers tax benefits, including deductions for mortgage interest and property-related expenses.
Get in touch, our expert brokers are here to guide you through.
The amount you can borrow depends on your income, expenses, credit score, and the lender’s criteria. It will also depend on any home loans you currently have and the equity available to put into your new purchase. Fill out this form to understand how much you can borrow today.
Pre-approval is a process in which a lender assesses your financial situation to determine the amount they are willing to lend to you for a mortgage. This process includes reviewing your credit score, income, debt-to-income ratio, and other financial details. With a pre-approval, you’ll have a clear understanding of how much you can borrow and the price range of homes you can afford. Talk to one of our lending specialists today to begin your pre-approval process.
Yes, you can use the equity in your current home as a deposit for an investment property. This can be done by refinancing your home loan and cashing out your equity, ensuring the loans are setup in the most tax efficient way. Equity is the amount your property is currently worth, less the amount of any existing mortgage on your property.
Commercial property is used for business purposes and residential property is used to live in, whether it be an apartment, townhouse or house.
Here are some other things to consider:
- Lease length: Commercial leases typically have a longer duration compared to residential leases. A commercial lease often includes terms such as 5 years with two additional 5-year terms, along with annual rental increases and market reviews. On the other hand, residential leases are usually renewed annually, with rental increases subject to negotiation between the landlord, agent, and tenant.
- Vacancy: Commercial properties tend to have longer vacancy periods compared to residential properties. While residential properties are often quickly occupied, commercial properties can remain vacant for months depending on factors like location, size, fit-out, and market conditions.
- Lease terms: Residential leases across the state are quite similar, with nearly identical lease agreements regardless of the renting agent. In contrast, commercial leases vary significantly and often include negotiated terms between the landlord and tenant.
- Rent increases: Commercial leases typically include fixed-rate increases.
- Rental yields: Commercial properties generally yield around 4-6%, while residential properties yield around 3-4%.
- Maintenance and repairs: Maintenance and repair responsibilities usually fall on the commercial tenant, whereas for residential properties, these are typically the landlord’s responsibility.
- LVR/deposit: Commercial properties usually need a higher deposit of 20% – 30% or more depending on the security. In comparison to Residential loans which can be sourced with as little as 5% in some cases.
- Capital growth: Commercial properties may experience slower capital growth compared to residential properties, although this depends on the broader market.
- How is residential property valued? To determine the value of a residential property, agents or valuers typically look at comparable properties sold in the area within the past 6 months.
- How is commercial property valued? The value of commercial properties is often based on the strength of the lease, rental income, square meterage, and comparable properties. However, unlike residential properties, commercial properties such as office suites and industrial warehouses cannot be directly compared. Also, the value of commercial properties is less likely to be influenced by emotional factors on the day of purchase.