114 AUSTRALASIAN DENTIST FINANCE With spring well and truly underway, it is de nitely the season for purchasing property. While many might hear this and automatically think of purchasing a new home, another big focus can be in investment properties – those purchased with the sole purpose of beginning or growing a property portfolio. ese can be properties that you may want to move into at some point, or just ways to create wealth for yourself. Either way, this process can be daunting to the uninitiated. In order to demystify the process, we have put together some information to help you understand where to begin, what to consider, the di erent ways you can make it happen and how your end goal can determine what you decide to purchase. We sat down with Paul Hastings, Head of Residential and Krissy Hamilton, Residential Consultant, to get the information you need. is will be a two-part series on investment lending, so be prepared for a lot of useful information. Who are you? It is rst important to establish where you are in your life from a career, family and risk-appetite perspective. If you have never purchased property before, or have purchased property to live in only, you could potentially be looking at your rst investment. is could either be something you are looking to move into at some point, like a larger family home for when the need arises, or something in an area where you would like to live in the future, but can’t a ord to live in now. Alternatively, you might be well into the property market at this point and want to either expand that portfolio, sell some of it to fund other property investments, or purchase multiple properties to bene t Investment lending 101 – Part 1 from the tax o set, especially if you are further into your career and life. Knowing where you are and where you want to be in ve – ten years will greatly in uence your decisions now. Challenges in the current market is might feel like old news by now, but there is still a lot of noise around high interest rates and rst home buyers not necessarily being able to get into the market, let alone a ord to buy where they want to live. In this case, it can be a good thing to consider “rentvesting”, where people purchase an investment in locations where they foresee that there will be strong growth, or perhaps where they may want to eventually live, whilst renting elsewhere. Another challenge for young doctors and dentists is saving enough money for a house deposit, with a lot of our younger clients still living at home to save for it while completing their training. With a standard deposit being 20% and property prices on the rise, this can be a large sum of money. Not only this, but when it comes to servicing a loan, that becomes di cult with increasing property prices. At Credabl, we can o er up to a 95% lend to doctors and vets with no LMI, making it easier to get into the property market sooner – more on this in our next article. Equity Before we get into how it all works, a note for those who already have property: you can leverage the equity in that property to purchase more. To do this, you will need to get a valuation done on your property to determine if it has grown in value, which is something that your nancier can organise. If you have seen an increase in property value (called “capital growth”), you can use this additional value (called “equity”) to get a loan for another property, depending on how much equity your property has gained. In our next article, we will delve into the process of purchasing an investment property, how to make it work for you, what to look for in an investment and the team you need in your corner – as well as how you can have a fully tax-deductible loan of up to 105% by drawing on your equity. u If you want to know more about anything you have read in this article, or want to speak to our team about starting your investment journey, reach out to us today on 1300 27 33 22. Disclaimer is article is a guide only and does not constitute any recommendation on behalf of Credabl Pty Ltd (ACN 615 968 100) or any of its related bodies corporate (Credabl). e information in this article is general in nature and we have not taken into account your personal objectives or nancial circumstances or needs when preparing it. Before acting on this information you should consider if it is suitable for your personal circumstances. Credabl is not o ering nancial, tax or legal advice. You should obtain independent nancial, tax and legal advice as appropriate.
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