Good Broker = Save you $5k, Great Broker = ? | Property Twins™
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We started investing in property more than 14 years ago. Like most buyers we thought property was about property. The truth is investing in property is not about the property.

​​As we expanded our property portfolio, we realised that property wasn’t about the bricks and mortar. Sure the right property and location selection was important, but buying property is really about accessing finance.

Property is a vehicle to access finance and therefore leverage. And therefore, accessing compounding growth.

So consider being able to purchase one $600,000 property and making 10% in capital growth. You’ve gained $60,000.

Then what if you held on to 2 x $600,000 properties and making 10% in capital growth. You’ve gained $120,000.

Imagine a $2,000,000 property portfolio and ​that’s 200,000 in gains. As we know the last couple of years, we’ve seen 10-20% and even more growth, so the gains have been compounding. With the population growth, this is not going to stop.

The truth of the matter is, whilst property is about accessing the correct finance, so you’re able to expand your portfolio, navigating the ever complex world of 1000’s of finance products and missing the point on the set up of the loan itself ​​​​means you’re not able to go past may be one or two investment properties.

With most people, not knowing the importance of UPFRONT finance structuring, right from the start, here is what they do and this keeps them stuck:

1. Secure a home loan with a product that doesn’t allow future flexibility to change the structure to further invest while using personal savings tax effectively.

2. Being with a bank that doesn’t allow equity cash out to invest further, so you lose opportunity to expand your assets.

3. Tying the home and an investment property together also known as cross collateralisation. This means the bank controls the profits and equity when you want to access equity, refinance or even sell.

4. Pull out equity out of the owner-occupied offset account and use that to put towards the investment property, there by losing tax savings.

Bad finance setup is not a problem until it is a problem. Read that again.

The opportunity cost of not having the right finance set up runs into 100’s of thousands of dollars. We know this as we’ve seen this first hand.

Finance is treated as a commodity that revolves around interest rates. But the tragedy is, you might save a few thousand dollars, though the opportunity cost of bad set up is the unknown – and possibly in many hundreds of thousands.

This is why we do what we do. Not receiving the right advice is what motivated us to do what we do today…. as mortgage brokers and finance strategists.

You know when people move from one property to the next and the one after that, whilst ensuring their home and investment loans are set up correctly. So, they pay off their home loan fast, save tax and minimise risk. We help them do that.

A good broker can save you $5,000. But a great broker can be a step ahead and make you 100’s of thousands of dollars.

To get started with the correct finance structuring, schedule a time with the team here:


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Note: Please ensure you always seek specific specific credit, tax, financial, legal or investment advice. Property Twins' Blogs are not a substitute for personal and specific, taxation, financial, legal or investment advice

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