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Are you keen to expand your property portfolio? With these tips, you may be closer to owning an investment property than you think.

How much can you borrow?

  • As a starting point, it’s essential to understand that loan-to-value lending restrictions are tighter for investor loans than they’re for owner-occupied loans.

    In the case of investment properties, we can lend up to 65% of the property’s value. It means putting in a deposit of 35% or more, which is similar to what other lenders offer. Unlike many of them, though, we can allow second mortgages or personal loans.

    This gives us more leeway to help you – even if you have missed repayments, have bad credit or your income has suffered a setback.

You can leverage your first property

  • There’s a reason why it’s called a property ‘ladder’: if you already own a home, you might be in a stronger position to buy again.

    Think of it as a ‘virtuous cycle’. Gaining enough equity under your belt may give you a wider array of choices for your investment purchase. And by expanding your property portfolio, you will be freeing up additional equity and potentially pave the way for more investments, thus creating even more equity.

    Talk to us: we can help you structure your home loan(s), find ways to get mortgage-free faster, and create wealth in the long turn.

Things to know

  • The right investment property can turn into a solid asset and help you grow your wealth over the long turn. But how can you identify the ‘right’ property for your portfolio?

    Several factors come into play. Choosing the right location, for example, is critical: you may want to be on the lookout for growth areas that are expanding in terms of local infrastructure, economy, and population.

    Plus, don’t forget to keep an eye on prospective returns and rental yield trends. It’s a good idea to look for a tight rental market, with minimum vacancy rates and low turnaround time between tenants.

    Lastly, know your target market and pick a property type that matches it, keeping in mind that low-maintenance properties might be easier to rent out immediately.

Get help: it’s worth it

  • Your first venture into property investment can be confusing. Besides those listed above, your property may come with extra costs like real estate taxes, property management fees, and maintenance bills.

    Mortgage advisers, tax agents and accountants can help you get a clear picture of what’s involved – before, during and after your purchase. And of course, our Lending Specialists at RESIMAC Home Loans are here to assist you.

    Like to know more? Please don’t hesitate to get in touch. We’re expert at helping Kiwis get on the property ladder and climb it at their own pace, one step at a time.

 
  • Use a calculator to get an estimate of how much you can borrow.
    Try one here

  • See if you qualify. To get a more accurate idea of how much you can borrow with RESIMAC Direct,
    click here

  • Call our Lending Specialists and they can do the calculation for you over the phone plus answer any questions you have at the time. Talk to us on 0800 466 656