Every situation is different and there is no one answer to this question. However, with the right guidance and a sensible, long-term approach, investing in property has been one of the most reliable ways to build wealth and financial security. 

Rental income helps with mortgage payments and there are tax concessions available to support your investments. However, circumstances can change and every investor needs to educate themselves on the risks so they understand exactly what they’re signing up for.

Mortgage Navigators have helped hundreds of investors build wealth through property over decades, in all kinds of circumstances. If you’re unsure if property investing is right for you, call our office and chat to one of our award-winning staff who can help work out if property investing is right for you.

Equity in your existing home is a great way to put your property to work for you. Equity is the value of your home, less any money owed on it. You can leverage the equity in your home to cover the deposit on a new property, using your existing property as collateral, rather than fronting up the cash as you did with your first property. This makes equity a great way to build your portfolio as it is generally much easier than saving for another deposit.

Call our office and talk to our friendly investment property experts to see how you can unlock the equity in your existing home to start building the future you want.

If you purchase an investment property, you are likely to come across the term “gearing”. This means borrowing for the purpose of investing.

If you borrow to make an investment it can be negatively geared - this is where interest repayments exceed the net income from rent, or positively geared where the rental payments exceed your mortgage repayments.

Negative gearing means that the cost of owning an investment property outweighs the rental income it generates. As an example, assuming your rental property earns $20,000 in one year and the expenses of owning the property (loan repayments, body corporate fees, maintenance, other taxable expenses) are $25,000. You will have a loss of $5,000 which you can claim as a tax deduction.

One benefit of this is the ability to claim tax deductions and reduce your taxable income. Additionally, a negatively geared property investment may appreciate in value over time.

It’s important to note the risk involved in negative gearing because you are losing money, so you’ll need to be aware of this so you can budget and prepare for the losses.

If you’re unsure about whether to positively or negatively gear your investment property, talk to our the property management experts at Property Navigators on the number below.

At Mortgage Navigators, we believe the right home needs the right loan. As you build out your portfolio, your needs will change and so will the structure of the loan you need. Generally, if you’re looking to invest in property, whether you’re buying or building, you’ll need to consider an investor home loan. There are two main options: Interest-only loans and Principal and Interest home loans. Each has its own pros and cons and there are many lenders across the market who offer different products.

To best navigate these options, get in touch with one of our award-winning mortgage experts who can help you find the right loan for your next home.