Property investment is undoubtedly one of the most popular investment options for all of us. Properties appreciate year on year (at least in Australia this has been the case over the last 30 years). Properties may also generate rent income. And, last but not least, property owners may use their properties for personal shelter.
As popular as it is, property investment is not an easy endeavour. Legal requirements may be burdensome and take a lot of time. The Home Loan Products of your servicing bank may be limited. The interest rate conditions of your bank may be suboptimal. The required initial deposit may be out of your reach or the bank may refuse the loan altogether.
If you have a lot of time on your hands and a built-in curiosity you can start to tackle any of the above problems on your own. However, there exist a group of experts, who can reduce your risks and generally add value to your property investment. These are the Mortgage Brokers. Here is how the mortgage brokers can help in your property investment:
Not Alone
Financial institutions will always have a strong team working for them. They will have economists, legal experts, financiers, negotiators, marketers and many many more. Although some will try to face these teams alone, this is counterintuitive and usually bad for business. Mortgage brokers like Altrua are intermediaries between the lending institution and the investor.
They will find the most appropriate product for each investor, they will find the best financial institution and they will solicit the whole deal. Investors will no longer need to face the financial team alone. They will have competent support on their side.
Speed Of Execution
For such an important topic as property investment speed is not always aimed at. However, the mortgage broker may facilitate and speed up this process. As there are many legal and bank requirements the process of property investment may take considerable time and a lot of leg work.
Fortunately, mortgage broking firms will have a multidisciplinary team supporting you. This always leads to less time wasted, fewer institutions visited, yet fast positive results achieved.
Legal And Industry Experts
As property investment is a complex endeavour, it will obviously be dressed in substantial legal attire and will have considerable customer requirements. However, our mortgage broker support will provide the help needed for these. The home loan broker herself, or the mortgage broker team (in the instance of mortgage broker companies) will have a strong legal background and expert market knowledge.
The broker will act as a financial adviser and be able to outline all the “fine print” in the lending contract. She will know in detail the standard industry practices (most investors will not know these, as property investments are not an everyday affair) and will offer the so much needed expert advice to the investor.
Huge Lender Network
One way to approach the need for leveraged financial support for your property investment is to visit your servicing bank and use their respective product. Such an approach, however, will seldom bring the best of results. While your bank may be a big one or even an international one it is highly unlikely that their Home Loan Product will be the best on the market. Let alone – the most suitable to your concrete needs.
One of the best benefits which a mortgage broker brings to the property investment is her extended network of property lenders. With this, the investor already has the freedom of choice as well as the opportunity to easily find the best suitable financial product on the market for him.
Flexibility
The expert industry knowledge and the wide lender network give the mortgage brokers the opportunity to provide strong flexibility to the property investor. This flexibility will not only make the deal possible but will ensure also that this will happen in the best possible conditions.
Increase Competition And Client Choice
Just going to your bank and taking their home loan product is unlikely to be the best investor choice. Brokers give investors the freedom of choice. This naturally increases the competition among lenders for the business of the investor. Now it is more than easy for the investor to find the property loan on the market which best suits her needs.
Instead of investors trying to get the attention of the servicing bank, the financial institutions compete for the business of the investor.
This competition is increased, as now it is not only between banks but property lending financial institutions also join in raising the stakes and improving the conditions for the future investors.
Decreased Prices For Home Loans
Logically the increased competition between lenders will bring the price of the property loan down and will improve the conditions of the loan contract.
When speaking about property investments the price is not only the magnitude of the applicable interest rates. With rates currently being on historically low levels, fixed interest home loan products will be the best for the investor.
This will mitigate any interest rate risk in the future (as the terms of real estate financing a long, evading this risk is an investment marvel). It is exactly such information, which the mortgage brokers bring to the property investment deal.
Personalised Service
Not two investors are absolutely the same. Each will have different income levels. Each will have different investment targets. Each will have different risk appetites. Each of them will have different education levels. What mortgage brokers do is offer a personalised service to the individual circumstances, wants and needs of each investor.
Free Service
After this exhaustive list of the added value of mortgage brokers to your property investment what tops it off is that usually, these services are free. Normally the mortgage brokers will earn a commission payable by the lender, rather than by the investor. This ensures that the investor receives expert advice without this raising the financial burden for the property investment.
All these benefits, which the mortgage broker brings to the property investment deal outline that his participation is about as important for the successful investment, as is the selection of real estate.
