Finding A Home Loan for Your Auckland Investment Property

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Rental properties are a popular form of investment in Auckland. While most people get home loans for a primary residence, others look for a mortgage for an investment property. The primary difference between a residence and a rental property is the potential for the owner to make a substantial income. In this article you can learn more about the risks and returns associated with owning rental homes.

Property Returns

An investment property is considered a non-liquid asset because the owner cannot access its value without selling the property or getting a second mortgage. Obtaining home loans in Auckland for rental properties can be difficult because lenders often see these loans as being a substantial risk. Locals buy these properties to make long-term profits as housing prices increase, but there may be little profit in the short term after expenses are paid. If the property is sold within two years of purchase, the seller must pay income taxes on the proceeds, which can diminish overall returns even further.

Investing in Property

It is typically more difficult to borrow money for rental properties than for primary residences. Some of New Zealand’s traditional lenders may have lower limits on these loans, and they will consider what the borrower can afford to repay. For the best results, a potential property investor should consult a mortgage broker in Auckland with a focus on investment lending.

Property Investment Risks

Property investing requires more work than other types of investments such as bonds, shares, and deposits. The risks include:

  • The chance that the lender may ask for full repayment on your home loan and the borrower cannot sell the property for an amount sufficient to repay the mortgage
  • The risk that the bank could sell a borrower’s primary residence and the investment property if they are mortgaged with the same lender
  • The chance that the borrower could be left owing money after a sale if the property has declined in value
  • The likelihood of an interest rate hike.

By paying a mortgage quickly, the borrower can reduce these risks. While investing in property is exciting for many New Zealanders, it can be challenging. If you are looking to buy an investment property in Auckland and need a home loan, visit our team of experts at Home Loan Advocate NZ (www.homeloanadvocate.co.nz) for a consultation.

4 Reasons to Hire a Mortgage Broker in Manukau

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For most people, a home is the biggest purchase of a lifetime. The most critical step a householder can take is to assemble a team of professionals to assist in the decision-making process. It is important to hire a Mortgage advisor in Manukau who understands the local housing market, as well as a reliable accountant, property inspector, and lawyer. While it is possible to get a mortgage from a New Zealand bank, a mortgage broker can provide the specialised service a new buyer needs. Here, home buyers can learn several reasons to hire a mortgage broker.

In-Depth Knowledge of New Zealand’s Mortgage Business

Clients who hire a mortgage advisor in Auckland can eliminate the stress associated with putting together a mortgage application and finding the right lender. A reliable local broker will explain all of the client’s loan options, and they will suggest financially beneficial programmes.

Specialised Assistance

When a home buyer goes to the bank and consults a financial officer, that person will only offer information related to that particular lending institution. Financial officers are only acquainted with the products with which they work, and they cannot make other suggestions even though it may be advantageous to the customer.

Volume Discounts

Because of the number of mortgages arranged by the busiest agencies, brokers have access to lower rates that are not available through other avenues. This, combined with the broker’s specialised knowledge of New Zealand’s mortgage industry, means the customer will always get the best product at the lowest possible rate.

They Work for the Customer

The best brokers in Auckland put the customer’s interests first. Mortgage brokers rely mostly upon referrals, and customer satisfaction is a primary goal. For the greatest chance at success, the broker will work closely with the customer on his or her terms. When choosing a mortgage broker, a home buyer should look for one with flexible hours and extended availability.

Buying a house is an exciting time in a person’s life, but finding the right lender can be difficult. By hiring a Mortgage broker in Manukau, a client can get the best options and service available in New Zealand. For help finding the right mortgage products, visit Home Loan Advocate NZ at www.homeloanadvocate.co.nz today.