From tenant selection to property maintenance to managing your obligations as a landlord, there’s a lot to take on board when you first start out. But once you’ve mastered the art of using a property to generate extra income, you’ll probably be keen to grow your portfolio and your personal wealth.
How do you do that? It’s likely that you’ll need to use the equity in your own home, with maybe some personal savings and any capital gain from your investment property thrown in. But there are two potential roadblocks standing in your way – The Reserve Bank and your own bank. In recent years, The Reserve Bank has introduced measures designed to cool the booming property market, making it more challenging for investors to secure finance. Also, the retail banks have stringent criteria when it comes to things like how much you earn, the amount you can borrow, your maximum repayments and how vulnerable you are to inconsistent rental income. Some banks will not lend beyond a certain figure, meaning your borrowing with them is “maxed out”.
Despite these obstacles, it’s still possible to create and grow a healthy property portfolio if you know how to tackle the challenge. You may need to approach another lender or review the structure of your current borrowing. At Best Mortgages, we have the experience to find workable solutions. We can help you work out what you want to achieve with your rental portfolio and how to make it happen. Contact us today for a thorough review of your current financial situation and to create a plan to reach your goals.