Financing your purchase – getting the best deal
As the saying goes, ‘It pays to shop around’ to ensure you get the best deal. A loan for an investment property is no different.
People often feel comfortable remaining with the bank that they have used for years. That is absolutely fine and investors are often able to get a good deal from their existing bank. However, we regularly find that when investors speak with a reputable mortgage broking professional, who has experience with property investment, they can get an even better deal.
By using thoughtful lending structures and the right loan products it can mean a better result for years to come and more dollars in your pocket.
Talking to friends, family and colleagues about their experiences with lenders and getting a few suggestions is a great place to start.
Choosing a solicitor/conveyancer—guidance through the purchase process
Naturally you’ll want to ensure you get all your questions answered and all the legal boxes ticked during the course of your purchase. Having a professional and responsive solicitor or conveyancer assisting you through the legal processes will ensure your purchase goes smoothly. It can be very useful to talk to a few different solicitors or conveyancers and compare their services to see who you feel most comfortable with.
Choosing someone with experience in dealing with DHA leases can also be an advantage.
Building reports—getting the ‘all clear’
In the ACT, building, pest, compliance and energy efficiency reports (EER) are included with the contract. In NSW (Jerrabomberra, Queanbeyan and Googong), the purchaser has the choice of whether or not to have the inspections done. It is recommended when choosing an inspector to ensure they have appropriate qualifications and insurances. Companies will often offer both pest and building reports at a combined discounted rate.
Capital Defence Homes will help your appointed inspector arrange access to the property at the earliest opportunity.
Depreciation—ensuring you get the tax savings you’re entitled to
The Australian Tax Office (ATO) allows property investors to depreciate residential investment properties. This can mean thousands of dollars’ worth of tax savings over the life of the investment. Some investors may not know or forget to claim what they are entitled to. Depreciation, for tax purposes, is claimed through a depreciation schedule prepared by a quantity surveyor. For more information from the ATO click here.
Talk to us about how we can help you with your depreciation schedule.
Learn more via our blog – Buying/selling a DHA-leased property mid-lease
*Capital Defence Homes is not a financial advisor or accountant. For advice about your specific financial situation please speak to a professional advisor.