You\u2019ve managed to put away enough spare cash to consider buying an investment property \u2013 now what?<\/strong><\/p>\n Happy days, but now you need to determine what you can afford and what kind of loan you may need. So what\u2019s your strategy?<\/p>\n Well you wouldn\u2019t buy from just any online retailer without checking out review websites and making sure the company is legit, would you?<\/p>\n In the same way, you should always seek out professional financial advice to see what strategy suits your personal circumstances.<\/p>\n The debt from an investment property is productive due to the rent earned from this asset. Picture: realestate.com.au<\/p>\n<\/div>\n Chances are your savings won\u2019t cover the entire purchase price of an investment property, but as we discovered last week taking on debt isn\u2019t always a bad thing.<\/p>\n If you\u2019ve been following the tips from the Property Couch\u2018s Ben Kingsley and Bryce Holdaway<\/span>, you have in fact planned for this exact scenario. You\u2019ve spent years patiently putting cash aside\u00a0for that deposit on an investment property.<\/p>\n You now know that you can use leverage to buy an asset, in this case a property, that generates an income which comes from renting it out.<\/p>\n But even though\u00a0you have the funds<\/a> for a deposit, this isn\u2019t like buying a regular house.<\/p>\n If you plan to create a property portfolio then you will be taking on more loans<\/a>, more productive debt, more often.<\/p>\n The challenge for property investors is learning how to approach things like getting a loan from a long-term perspective, says\u00a0Holdaway.<\/span><\/p>\n \u201cIf you\u2019re buying your own home, you really are concerned about the transaction that\u2019s in front of you to get that house. But it\u2019s really not like that if you\u2019re building a portfolio.<\/p>\n \u201cYou have to think two or three loans in advance and the decisions you make today on the loan you get for this property, can negatively or positively affect what you do down the track,\u201d he says.<\/p>\n The advice you get here is crucial and the right advisor will help you create a strategy to deal with all these loans, says Kingsley.<\/p>\n \u201cWhat we\u2019re talking about here is we don\u2019t deal with a transactional advisor, we\u2019re dealing with someone who can look after the strategy and tactics and think long-term ahead,\u201d he says.<\/p>\n The right advisor\u00a0is a great start and the other thing to consider is which lender or lenders<\/a> to use.<\/p>\n Most of us shop around for big purchases and loans are no different, in fact you are more likely to get a better deal\u00a0for each individual loan if you seek out a different lender each time.<\/p>\n \u201cSo the key here is to get stand-alone lending, isn\u2019t it? \u00a0You don\u2019t want the banks to have security crossed everywhere so they\u2019re in control.<\/p>\n \u201cIf you can get stand-alone lending for all of your borrowing, if one bank says \u2018no\u2019, you can say \u2018that\u2019s fine, I\u2019ll go chat to the bank down the road\u2019. But that only comes from having the structure right at the beginning and thinking two or three shots in advance,\u201d says\u00a0Holdaway.<\/span><\/p>\n \u00a0<\/p>\n For more from the Property Couch, visit\u00a0thepropertycouch.com.au\u00a0or subscribe to the Property Couch podcast, available on iTunes or Android.<\/strong><\/em><\/p>\n \u00a0<\/p>\n
\n <\/p><\/div>\n [ad_2]What we\u2019ve learned so far about saving & debt<\/h2>\n
![\"Types](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/06\/02112242\/debttypes2_a-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nWhy do you need a loan strategy?<\/h2>\n
Spreading out your loans<\/h2>\n
![\"Loan](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/06\/13094917\/Bank-A-and-B-body-1024x768.jpg?resize=1024%2C768&ssl=1\")
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Realestate.com.au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"