When you purchase your first investment property you may be concerned about the costs and the risks involved. Initially, you should aim to achieve a positive cash flow and minimise your risk, especially when using your own home to secure the funds to invest. There are many ways to structure your loan and many investment loan products available. The Cash Flow Manager is a product specifically designed to give you positive cash flow and affordability on your investment, therefore reducing the risk of investing in property.

Where possible it is advisable to avoid cross collateralisation. Many lenders will insist on taking a first and in some cases a second mortgage over your properties. Most times this approach is unnecessary and does not allow you to use other lenders and limits your flexibility should you decide to sell your investment property or need to borrow more funds to secure further investments. In this case, many investors have found by using the same lender, they can be dictated to on how much they can borrow and subsequently miss out on good investment opportunity.

Getting it right the first time is so important. We need to begin with the end in mind. As most investors plan to purchase more than one investment property, it is important to start with the right structure in order to minimise fees and hassles when using your own property to secure your investment property. By using different lenders who specialise in investment loans you are able to borrow substantially more funds and minimise your risk. Should you decide in the future to sell your investment property, you will know that this can be done with a minimum of fuss and without incurring additional costs.

Structuring your loan is one of the most important things to consider when purchasing an investment property. Structuring your loan correctly will allow you to use positive cash flow to build equity for future investment, reduce non tax deductible debt, and give you ready access to additional funds.

When you find the investment property you want, having pre-approval will minimise the risk of your contract falling through because your finance wasn't approved within the fourteen day contract deadline.

Pre approval gives you negotiating power and an advantage over other buyers.

Pre approval gives you a maximum amount that you can borrow helping you in you choosing the right property.

Pre approval avoids any delays in settling your contract. All we need is the property valuation to complete the settlement.

Before you decide to invest in property it is important to gather as much information as you can to help you make an informed decision. Powerhouse Mortgages have a broad and unique blend of investment loan products and work with Builders, Property Developers, Real Estate agents and financial planners to provide experience and knowledge for our most valuable asset, our clients. Our team of lending specialists can assess your immediate and ongoing requirements to find the right investment solution for you.

Contact our investment lending specialists and take the guess work out of buying your next investment property.