InvestorFi

Graphicmark_IF

AUSTRALIA WIDE 25.2744° S, 133.7751°E

Investorfi - Logo

Welcome to InvestorFi. It’s good to see you.

wordmark_IF
Menu
Welcome to InvestorFi. It’s good to see you.
AUSTRALIA WIDE
BECOME A PARTNER
Scam warning - Click here to find out more scams targeting our clients
Scam warning - Click here to find out more about scams targeting our clients
Scam warning - Click here to find out more about scams targeting our clients
Investorfi - Logo
Welcome to InvestorFi. It’s good to see you.
AUSTRALIA WIDE
BECOME A PARTNER

How to Refinance Your Investment Property

10/15/2022

Have you considered refinancing your investment property? The Australian real estate market is constantly changing, so it’s important to keep your investment up-to-date. Whilst refinancing your investment property is a big decision, it could also be a great way to secure lower interest rates and improve your overall financial situation.

When you refinance your investment property, the process is similar to any other refinancing home loan. You’ll need to compare rates and terms from different lenders and consider the costs. 

However, as an investor, you could gain more benefits. Whether you want to save money, release equity, consolidate debt or tax deductions, refinancing could be the right solution for you.

Before you decide, it’s important to understand the process, potential benefits and risks involved. Hence, finding excellent brokers to help with the process is essential to navigating the market. This is because property investing can be complex, and you need an expert to understand your specific goals.

At Investorfi, we’re here to help you find the right investment property home loan rates for your needs. We have a team of experienced mortgage brokers who can guide you through the process and help you make the best decision for your circumstances.

Reasons to Refinance Your Investment Property

Building wealth through property investing is a popular strategy in Australia. Refinancing your investment property could be a great way to accelerate your wealth-creation journey.

Here are some common reasons why investors choose to refinance:

Take advantage of a lower interest rate

As interest rates fluctuate, many investors and homeowners opt to compare investment property home loan rates and refinance to a lower rate. Doing so will let you save money on your repayments, which you can reinvest into your property portfolio.

Access equity

If your property has increased in value, you could refinance and release equity to use as a deposit for another property investment. This is a popular strategy known as ‘equity financing’ or ‘negative gearing’.

Access cash for other investments or needs

You may also refinance and take out cash for other investments, such as shares or managed funds. Or you may need the money for personal use, such as home renovations or a child’s education.

Reduce your monthly mortgage payment

Reducing monthly payments is a great strategy to free up cash flow. You can refinance a home loan with a longer term. If you have 20 years left on your current 30-year loan, you could refinance to a new 30-year loan. This would reduce your monthly repayments.

Change the terms of your mortgage

You may also want to refinance to change the terms of your mortgage, such as the interest rate type or loan features. For instance, switch from a variable rate to a fixed-rate loan to protect yourself from rising interest rates.

How Soon Can I Refinance My Investment Property?

You can technically refinance your investment property immediately after buying or securing a new home loan, but that might only sometimes be the best decision. Moreover, the decision to refinance your investment property depends on the property’s value and your financial goals. 

Some lenders may require you to wait six months to a year before they allow you to refinance. This is because they need time to assess your loan and property value. Others may charge exit fees or enforce minimum loan terms, so you must check with your current lender before refinancing.

It’s wise to refinance your investment home loan when you owe less than 80% of the property value. By doing so, you can avoid paying lender mortgage insurance. Also, most lenders view borrowers with a lower loan-to-value ratio as less risky.

How Long Should You Hold an Investment Property?

According to research by the NSW Treasury, half of all property owners in NSW will sell their homes within 10 years of purchase. The ‘Holding periods of residential property buyers in NSW’ report found that half of all purchasers sell their dwelling within approximately ten years, 60% sell theirs within 14 years, 70% sell theirs at the 21-year mark, and 80% finally sell up after 35 years. [1]

Whilst there is no set rule or best practice for how long you should hold a property investment, it’s important to consider your goals and financial situation before making a decision. If you’re looking for long-term investment growth, hold your property for 10 years or more. On the other hand, if you’re seeking shorter term capital gains, you may aim to sell after five years or less.

If you’re trying to decide how long to keep your property, here are a few things to consider.

Allow time for an increase in value

It can take time for property values to increase, so you’ll need to be patient if you’re holding property for capital growth. Experts recommend keeping investment property for at least five to seven years before selling.

Be patient

Many property investors are impatient and want to see results quickly. However, it’s important to remember that property investment is a long-term game. The bottom line is that you should hold your property for as long as it suits your investment strategy.

Consider the market

It’s also worth considering the property market when deciding how long to hold your property. If prices are going to fall soon, you may want to sell sooner rather than later. On the other hand, if you believe prices will rise, you may want to hold onto your property for longer.

Is Owning an Investment Property Worth It?

Property investment delivers consistent results over time and outperforms other investment types in the long run. Whilst property values may rise and fall in the short term, over the long term, they have constantly increased.

To make money from property investment, you need to buy one that will increase in value over time. This can be achieved by believing in a growth area or adding value to the property through renovation or development.

Here are some benefits of buying a property:

  • It’s a tangible asset.
  • It can provide positive cash flow.
  • It can appreciate.
  • It offers potential tax benefits.

Start Your Property Investment Journey with Investorfi

Property investing should not worry you. When you’re ready to refinance your investment property, finding a mortgage broker who can get you the best deal is essential. Here at Investorfi, we’re experts in investment property home loans and can help you find the right loan for your needs. We’ll compare hundreds of loans from a range of lenders to find the best refinancing home loan option just for you.

Call us and learn about our services.

Contact Us
wordmark_IF

partner with us

Subscribe to stay update date with the latest services, and articles and news and then some.

subscribe
Graphicmark_IF

This is what we do.

We are finance strategists in the Mortgage Broking industry, helping Australians build wealth through property investment.

Our sole purpose is to reinvent ways to keep the Great Australian Dream Alive. Because we believe it’s everyone’s right to the security home ownership affords our families and community. Yes, our niche is Finance Strategy for Property Investors, but it is not what we do that makes us tick;
it’s

Because property investment is a decisive step toward financial freedom, we cultivate lasting relationships with our clients. We ain’t just a ‘whame bam, see ya later man’ kinda outfit. In fact, our business is built entirely from our lasting relationships with our clients who have suggested us to their inner circle – their family and friends. That is a pretty big tick of approval and a sure vote of confidence.

This is How we do

What separates us from the rest?

Have you ever considered the difference between Mortgage Brokers?

A Broker worth their salt has a playbook of ‘scenarios’. They are finance strategies that have worked in the past. He will offer up one, two or even three scenarios that he thinks will work best for you. 

But the great ones challenge the status quo, strategising new plays that serve your unique situation and financial goals. They will study, visualise, and fine-tune before offering only the best scenarios that build a rewarding property Portfolio.  

They never let good be the robber of the best and only play to win!

InvestorFi is a group of finance strategists that will design a unique scenario for your state of play towards your long-term game plan.

But don’t just take my word for it.

Clients like Tony F. said: I couldn’t be happier with the service. Wayne was excellent in guiding me through and delivering a great investment loan. Very responsive and savvy investment brokers. Will continue to use their services in the next purchase. 

And like Kim, Wayne is extremely dedicated, professional and a pleasure to work with. He worked tirelessly to help me secure an alternate lender before the settlement date and was extremely prompt and clear in his communications with me. 

And 

Robert wrote: Wayne is always very responsive and takes the time to lay out all the options in plain English.

Reviews like this make our souls sing. We’re in the business of helping people achieve real results that last!

So if you’re looking for a great Finance strategist like these incredible clients, you’re in the right place.

This is why we do

Gone are the days a single income could afford 2.5 kids, a pet, and a four-bedroom house in the burbs! 

At InvestorFi, our sole purpose is to reinvent the great ‘Australian Dream’. Because we believe it’s every citizen’s right to the security home ownership affords our families and community, not just for today but for generations to come.

But because it’s become so difficult, it requires complex solutions. One way is to seek finance strategy before purchasing a home. This way, you can leverage your full potential to live where you want to and invest where you can afford to. 

Property ownership has become a game of ‘finance strategy’, placing a premium on finance know-how. That is why we value education; our mantra is knowledge equals freedom, but knowledge shared is freedom multiplied.  

There is no drought; we have hit a new era with its epic challenges. Not everyone is up for the grind it takes to keep the dream alive. That’s why we also place a premium on camaraderie. We don’t see ourselves as a ‘hit and run’ service but as a hub and a way of life.