Why should you refinance your investment property?
Whether your investment portfolio is a burgeoning filing cabinet or a single investment, there’s a chance the current market and interest rate uncertainty have you thinkin’ about whether it might be the right time to refinance your loan.
(You smart cookie)
Investment properties form an important part of many people's portfolios and plan, but owning an investment home does come with its own set of hazard cones.
The good news at current is, we are seeing the lowest vacancy rates since 2006, so thankfully? Finding tenants is likely not an issue you’re facing. The slightly bad news, however, is oftentimes the maintenance, bills and management can seem bottomless.
Add in rising interest rates and you might be starting to feel a lil bit uncomfy.
So with that, every penny counts, and this could be the difference between an extra few hundred or thousands back in your pocket every month (which in turn could truly add up to tens of thousands over 20-30 years!) – this is where refinancing comes in.
Refinancing can help you…
Get a better deal
Negotiate a better rate and ultimately, save cash. If you have to, that means abandoning any loyalty you might feel and letting your wallet strings do the talking for you.
If you locked in an agreed rent before the recent hikes, the chances are you might be suddenly facing a significant shortfall in the rent and the minimum repayment.
That makes this a great time to go to your current lender to see what they can offer you and shop around to secure the best rate.
Leverage em’ tax benefits
Whatever the nuances of your finances it’s possible that you may be looking to refinance to take advantage of a tax break or change the landscape of your income.
Your broker can work with your accountant to understand what's important to you to help you achieve your goals. You know what they say, teamwork makes the dream work.
Cash money
Want to free up cash in the equity of your investment?
Whether you’re looking to use that cash to purchase another property, renovate or purchase an asset, refinancing to release the equity tied up in your investment property is something your broker is skilled at (in fact we do it every day). We can help you get the best valuation, the best rate and a package.
Refinancing doesn't need to be a stressful or overwhelming prospect and generally doesn’t require the admin and paperwork of a new loan.
Processing time is (generally) pretty quick, with most refinancing applications being completed within an average of 2 weeks and if you’ve got tenants, there is typically minimal disturbance to them during this process.
If you’ve been thinking about refinancing your investment property for any reason, Lenny can connect you with over 41 lenders to find you the bank that’s best matched to your needs and goals.
Book an obligation-free virtual cuppa or give us a call at 0487 688 487 to talk through your current position and where you’d like to be.