Author: Frank Barragan

        Choosing an investment loan can be a daunting experience. There are endless options and mountains of information out there, so how can you be sure that you’re getting the best deal for your situation? Let’s have a quick look at the options. Fixed loans Your interest rate remains the same over the life of your loan Budgeting is made easy as your outgoing costs are the same each month Fixed loans don’t offer the breadth of features variable rates do, and you won’t be able to make extra repayments to decrease your loan balance when times are good. Variable loans Your interest rate changes as the Reserve Bank adjusts to economic conditions. Variable rates are useful if you’re not worried about fluctuating repayments and want to take advantage of lulls in the economy. There’s plenty of add-ons and benefits of a home loan that you can use to your advantage, including: Interest only repayment...
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      Negative gearing can be a smart financial strategy for property investors and those looking to build up a portfolio and prepare for their future.   How does it work?   Simply put, negative gearing describes the situation in which your rental income is less than expenses you pay on your property .The main expense is usually the interest on the loan you took out to pay for the property but can also include council rates, maintenance and repairs etc.   Because the amount you are making on the property is a negative sum, you can offset the taxes you pay from other sources such as your income.   Sounds great right?   Well, yes! Who wouldn’t want to pay less tax?   Unfortunately, negative gearing isn’t an option for everyone and for it to work effectively it’s highly recommended that you speak with a financial professional. I can walk you through your investment loan o...
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    Existing properties can make excellent investments. As with any big financial decision it’s necessary to thoroughly map out what you want to achieve from your investment at the outset, as well as the potential advantages and disadvantages of purchasing an older property. Why existing properties make good investments: You have a clear rental history with an older property, so you know you’re your potential income might be from the start Some existing properties already have tenants – so you won’t have to spend extra cash finding someone to help with your repayments You can quickly add value to an established property with smart renovations or landscaping You're not buying sight unseen as you do with off-the-plan investments – so you know what you're getting and how it will work for you. Be Aware: You may need to do immediate repairs or renovations to appeal to tenants willin...
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      Many owner-occupiers don’t think they can afford to invest in property whilst paying off the mortgage on their own home. This is a misconception as there are some great advantages to investing that can make building your nest egg easy.   Lenders tend to look more favourably on owner-occupiers seeking to invest. This is because the equity in your existing home puts you ahead of the game and makes you a safe bet in the eyes of a lender.   It also means you don’t have to take out lenders mortgage insurance and your paperwork and fees will be reduced.   Best of all, you might not even have to put down an additional deposit.   This all sounds great on paper but it’s important to remember there are still risks involved which is why it’s crucial to get professional financial advice before you use your home as collateral.   If you have any questions , reach out and let's talk. ...
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      You’ve had a look at what different banks are offering and realised you are missing out on additional features that could save you thousands of dollars over the course of your loan.   Financial institutions are continually innovating to stay competitive so it’s definitely worth looking at what’s on the market.   Here are four loan features you should keep an eye out for:   Interest only repayments This allows you to reduce your monthly repayments so you are only paying off the interest portion of your loan.   Additional repayments This allows you to make additional repayments while interest rates are low.   Offset account This allows you to keep a sum of money in a separate account reducing the balance you need to pay interest on.   Redraw Facility A redraw facility allows you to claim back additional repayments if you need quick cash.   ...
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      One of the most common ways to fund a renovation is through equity built on an existing home loan. Simply put, equity is the difference between a bank’s valuation of a property and the amount of money a person owes on a home loan. This builds up over time because the value of a property increases and the balance of a home loan decreases. Using equity will help you avoid the additional costs of creating a new loan, however if you increase your LVR by over 80% you may have to pay lender’s mortgage insurance.   To discuss the pros and cons of adding renovation costs to your current home loan reach out and we'll talk. My Very Best To You Always,  
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      If you need money for renovations and aren’t interested in taking out a personal loan or if you don’t have enough equity to add to your current one, you might want to consider finding a new loan with a new lender.   This is one of the easiest ways to get the money you need and keep your debts in one easy repayment.   While you may get a better deal with lower interest rates and more flexible features, you should be cautious of potential additional costs and how borrowing will affect your LVR.   Give me a call on to have a chat about the best way to fund your home improvements.  My Very Best To You Always,  
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      Personal Loans for Renovations Whether it’s a new bathroom, or replacing the appliances in the kitchen, there is always something to do around the house.   A personal loan is a great option for those who need to access money quickly. It helps pay off your loan sooner and repayments are fixed so it’s easy to budget for.   Borrowing limitations and strict criteria exist, so if you would like to find out if a personal loan is right for you, please reach out. My Very Best To You Always,  
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