Investors

Direct Mortgage Concepts

The Key to Your Next Investment

"We should have done this years ago, but we never got around to it. When is the best time to buy an investment property"?

These are two of the most common lines we hear from investors.

Never has it been more important to plan for your future. It's critical for you and your family looking ahead.

Would you like to retire financially secure without the need for reliance on welfare or family? The decisions you make now will almost certainly shape your destiny.

We'll put you on the path toward a better future by showing you the right way to finance these plans. If you need help locating a reliable investment, we can also point you in the right direction.

We've access to experienced industry professionals who provide researched solutions to suit all circumstances.

10 Easy Steps to Your Next Investment

Step 1

Learn how to make it happen

People know they need to do it, but all to often, they keep putting it off. We’ve been dealing with investment property for over two decades, so lean on our experience and get the process started today.

Step 2

Find out your borrowing and purchase capacity

The all-important details. How much you can borrow or your borrowing capacity. Then, what you need to spend to get a reliable investment. Our resources and decades of experience will assist you to identify what’s considered to be a superior investment opportunity.

Step 3

Ensure you finance it correctly so you can maximise the return - you can't undo it

When your car brakes down, you go to your mechanic, when your not well, you see your doctor. So when you’re financing your investment, make sure you deal with an experienced mortgage professional who can structure your investment finance so as to maximise your return and not miss out on maximum return opportunities. It’s important to get it right the first time as you can’t put the genie back in the bottle.

Step 4

Get the correct loan structure to suit your specific needs

Don’t give the bank all the control. The bank will happily stack the deck in their favour, so having your finance structured correctly will help you sleep better at night knowing you’re holding all the aces.

Step 5

What does a good investment property look like

Buying a good investment property is done with the head, not the heart. It’s not an emotional decision, it’s a financial decision. Doing the research or having the people on your team do the research for you is the best way to ensure your investment has a better chance to maximise the return you are looking for. Our experience and connections can point you in the right direction to speak with industry specialists like accountants, buyers’ agents and financial planners.

Step 6

I wouldn't live in that place - you don't have to

When you buy in investment property, in most cases, you won’t live there. A good investment offers tenants things like employment opportunities, educational opportunities for their kids, lifestyle but more importantly, these things will attract rental demand which equates to capital growth and yield. The colour of the carpet or walls is largely irrelevant.

Step 7

What if something happens to my investment property or there's no tenant

There are no guarantees in life, there’s always a risk. What you can do is mitigate the risk. Just like you insure your car or your life, you insure your investment property. Insurance is a mitigation against the unforeseen circumstance. When you insure your investment, it’s also likely that the cost is another tax-deductible expense.

Step 8

What is negative/positive gearing

Think of your investment like a business. There is income(rent) and there are expenses (interest, running costs and depreciation). When the investment makes a loss, the loss is offset against the owner’s income which usually results in a fully legal tax minimisation effect known as negative gearing. When the investment makes a profit, you may pay more tax, this is what is commonly referred to a positive gearing. *Please consult your tax accountant for specific taxation advice.

Step 9

Why is capital gains tax good

When you make a profit from an investment, it’s sometimes subject to capital gains tax. Paying capital gains tax means one thing, usually you’ve made a profit. Making a profit is never a bad thing. *Please consult your tax accountant for specific taxation advice.

Step 10

It's easy, can I buy another one

It’s not uncommon for people to buy their first property and then have the capacity to buy more. Like most things, once you have done it and realise that it’s not that difficult, they are keen to purchase again and again. Making a profit by leveraging against an asset that you have borrowed to purchase is a simple yet effective path to a sound wealth creation strategy.