As a mortgage broker, I understand that investors in real estate are currently facing financial challenges beyond just the loss of tax deductions. Rising borrowing rates, increased insurance costs, rates and deferred maintenance, as well as new Healthy Homes laws, have all contributed to making purchases more expensive. This can have a severe impact on cash flow and may even lead to investors failing servicing calculations. Additionally, falling housing prices are eroding equity and making it more difficult for investors to access liquidity.
To protect yourself in this situation, I recommend taking the following steps:
Identify the realities of your financial flow. Take the time to forecast how additional charges will affect your cash flow over the next year or two and how they will affect your portfolio. This is especially important for investors approaching retirement or other lifestyle changes that will have an additional impact on income.
Strike out at any prospective problems. Don’t wait to address issues until they become major problems. Finding a different solution may take some time, so it’s better to deal with them before they become major issues.
Be willing to think creatively. Clients often need creative solutions to work through difficult problems. Consider restructuring or refinancing your debt to free up one of your homes from the burden of a mortgage. Additionally, non-bank options can provide greater flexibility and may be worth considering, even if they come with a higher cost.
As a mortgage broker in Tauranga, I am here to help you navigate these challenges and find the best solutions for your unique situation. Contact me today to discuss how I can assist you in protecting yourself financially during these difficult times.
Be open-minded about unconventional sources of funding. While traditional banks may be tightening their lending criteria, there are still alternative forms of financing available such as private lending or crowdfunding. These options may come with higher interest rates or fees, but they can provide a viable solution for those who are struggling to secure financing from traditional sources.
Seek professional advice. As a mortgage broker, I have the knowledge and experience to guide you through the process of finding the best financing options for your situation. I can help you understand the nuances of the current market and provide you with the information and advice you need to make informed decisions.
In conclusion, the current financial climate is challenging for investors in real estate. However, by understanding the realities of your financial flow, addressing prospective problems proactively, thinking creatively and considering alternative forms of financing, and seeking professional advice, you can effectively protect yourself and navigate through these difficult times. As a mortgage broker in Tauranga, I am here to help you every step of the way. Contact me today to discuss your options.
About Best Mortgages:
Tauranga’s Best Mortgages has been a trusted mortgage broker for 15 years and have helped hundreds of families reach their property goals. Our name says it all—we find the greatest mortgage solutions for our clients. We offer refinance, first home buyer, refinance, and investment property loans. We proudly serve clients across New Zealand.
Best Mortgages understands that buying a home is a major financial decision that demands careful consideration. We listen to our clients and comprehend their financial situations. We can then provide them the best financial solutions to help them become homeowners.
Our skilled mortgage brokers shop around for the best lending product for our clients. We strive to make lending easy. To ensure a stress-free experience, we guide our clients throughout.
Best Mortgages can assist first-time homebuyers and seasoned investors accomplish their property ambitions. Discuss your home lending needs with us today to find the best mortgage for your situation. As a Best Mortgage broker, we assist you locate the right mortgage for your needs.
Give the Best Mortgage brokers a call today on 021 449 177.