Property investors with or plan on acquiring three or more properties.
Australians for many generations invest in residential properties as a source of wealth creation and retirement fund. It also comes with social responsibility in creating safe and livable housing for the community.
However, growing a large property portfolio of three or more properties has two main hurdles.
Servicing – As your portfolio and loan size grows, your loan servicing drops with most traditional lenders. Planning which lender to use for each purchase and correct loan structure will help with your servicing.
Deposit – As your portfolio grows you may need more deposit than the standard 20%. This is where equity release and cash out play a big part.
Also planning your portfolio from the very start with a Shape mortgage broker. Example Your first two properties you may decide to use a lower deposit of 5-10% and pay Lenders mortgage insurance (LMI) – note LMI can be waived for certain profession and first home buyers.