The importance of structuring your finance correctly


Simply signing on the dotted line doesn't always make for a successful property investment, particularly if you've financed that investment on credit. Making sure that credit has been structured correctly [i.e. you're paying a little as possible for that debt, in the safest way possible] is paramount to a successful investment experience.
It's an arena you'll probably need guidance from a professional on, as it's not always easy to follow, let alone truly understand and appreciate, the many options available to you as an investor and a seeker of credit, and that's where we're here to help. For example, it may seem a no-brainer that taking the lowest interest rate possible would be the ideal route, but it's the sort of thing that needs to be heavily contested against the advantages of a slightly higher interest rate on an offset mortgage account, particularly regarding investment property. Offset accounts allow every cent you have in the linked transactional account- starting with your wage on payday- to work towards reducing the interest you're liable to pay. The impact that reduction can have may just be worth a higher overall rate.
There's similar sticky issues when it comes to the fixed vs. variable interest rate debate, which has a host of possible permutations so wide it would be worth another blog post just to look at them! There may even be considerable property investment advantages to using different lenders for your investments. The mortgage market is fluid, and different lenders are able to offer different rates varying almost daily. The lender who worked well for one purchase may not be able to offer you the best deal for another. This can be affected by their area of expertise and their area of operation, too, as well as industry contacts and more. There's also always a benefit in spreading risk too, particularly in today's fluctuating global market. That being said, there's a host of advantages to using a single lender. It's important to make sure these pros and cons have been weighed up properly to ensure you get the best deal possible. That's where structuring your finance correctly becomes vital.
So whilst it's always best to keep an overall eagle eye on your investments- for example, do you know whether your finance person has invested in property for you- the guidance of a professional to ensure you have structured your finance to best benefit for yourself can be invaluable and make a good property investment into a great one.


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