Upgrading your home

We have helped numerous clients to upgrade their home. Many of them have been surprised to find that they were easily able to convert their existing property into a rental. With the rental income and tax deductions, the actual cost of owning an investment property is much less than a lot of people think.

This is where having the right structure in place from the outset can be paramount. Converting an existing home to an investment property can usually yield tax benefits. Some loans can be more adaptable to this situation than others. If you would like more information, call us today.

Bridging loans

if you have found your dream home, but need to sell your existing property first, you may consider bridging finance. This special type of lending are allowed you to borrow enough to see you through the selling time period, whilst still only assessing your capacity on the end debt.

Many people have found this more profitable because they are not forced to drastically reduce their selling price for a quick sale.

A client of ours, Ian, provides a good example. Ian came to us with a contract to purchase a property for $655,000. He had a verbal offer on his existing property for $520,000, but he felt like it would be worth a lot more. His loan on the existing property was around $140,000.

Rather than accepting the offer, Ian purchased the new property with bridging finance for $800,000. He sold his home four months later for $545,000, and reduced his debt down to $270,000. He was $20,000 better off because bridging enabled him to sell the property in his own time.

  • Building a new home
  • Family guarantee loans

“Our son Todd had been saving for his first home for years, but due to the world financial situation, the banks kept on raising their requirements, from initially lending 100%, to then requiring 5% deposit, and then six months later Todd was told he would need to show a history of his savings and 10% deposit!!

Andrew showed us how we could pledge a limited component of our own equity as a guarantee for Todd, and bypass the need for all of those savings requirements.

This has had a twofold advantage:

  1. It enabled us to get Todd into a great unit while the prices in Sydney were at a low point.
  2. It got Todd out of the house, so Nigel and I have our life back!!”

– Erin Taylor, NSW