property investment

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Embarking on your property investment journey can be incredibly rewarding, yet it often comes with questions about where to begin and how to navigate the complexities of financing. At Pathway Finance Solutions, we're committed to equipping you with the knowledge and support you need for this exciting endeavor. Here's a step-by-step guide on how to get started, including the option of using a Self-Managed Super Fund (SMSF) to propel your investment strategy.

Before diving into property investment, take a moment to evaluate your current financial standing. This involves reviewing your savings, income, expenses, and existing debts. Understanding your financial position will help you determine how much you can invest and what types of properties fit within your budget.

If you already own a property, you may have usable equity. Lenders will generally allow you to access up to 80% of the property’s value (this varies by lender), minus what you still owe.  

Example

Property Value = $1,000,000

80% of Property value = $800,000

Residual outstanding loan = $400,000

Useable Equity = $400,000

This equity can be a valuable resource, allowing you to access funds for a deposit on your next investment property. By leveraging your existing equity, you can seamlessly enter the investment market without the need to save a traditional deposit. Most banks will only allow you to use 80% of your properties equity

For many investors, using a Self-Managed Super Fund (SMSF) is a powerful strategy for investing in property. Here's how it works:

• What is an SMSF?: An SMSF is a type of retirement fund that you manage yourself. It allows you to invest your superannuation savings in property, providing a potential avenue for growth while also securing your financial future.
• Buying Property through an SMSF: You can use your SMSF to purchase residential or commercial investment properties. This opens up opportunities for wealth accumulation within your super fund, offering both tax benefits and control over your investment. It is essential, however, to comply with the strict regulations surrounding SMSFs, and we can guide you through this process.

Once you’ve identified a property or decided to leverage an SMSF, the next step is applying for a loan. Here’s how we can assist you:

• Choosing the Right Loan: There are various loan products available, including those specifically designed for SMSFs. We can help you find a loan that aligns with your investment strategy, whether fixed, variable, or interest-only.
• Loan Structure: The set up and structure of the loan is just as important as the loan type and features. We will work with you so that you understand your options. 
• Gathering Documentation: We’ll guide you on the necessary paperwork, including proof of income and property details, ensuring your application is as efficient as possible.

After submitting your loan application, the lender will assess your financial information and the property details. Here's what you can expect during this process:

• Property Valuation: The lender will conduct a valuation of the investment property to confirm its worth.
• Conditional Approval: You may receive conditional approval, allowing you to proceed with the purchase, contingent upon certain requirements being met.
• Final (Unconditional) Approval: Meeting these requirements will lead to final loan approval, so you can confidently move forward with your investment acquisition.

At Pathway Finance Solutions, our commitment to you extends beyond loan approval. We believe in fostering lasting relationships and being a trusted partner in your investment journey.

• Portfolio Management: We’ll assist in managing your investment portfolio, providing insights into market trends and strategies to maximise returns.
• Refinancing Options: As your financial situation changes, we’ll discuss refinancing possibilities that may allow you to access further funds for additional investments.
• Continuous Education: We’re passionate about empowering you with knowledge. You’ll receive ongoing support and resources to stay informed about both property investment trends and regulations related to SMSFs.

Click here for more information on our ongoing support and commitment to you.

Starting your property investment journey doesn't have to be overwhelming. With our expertise and personalised support, you can navigate the process confidently and unlock the doors to financial freedom through real estate. Contact us today, and let’s embark on this exciting venture together!