How to ensure a Successful Investment Deal? - Tips for High Net Worth Investors

Australia's efficient Torrens Title security registration system provides security for both High Net Worth Investors (HNI) buying real estate and for finance providers that provide the funding structure. This creates a highly efficient commercial environment for High Net Worth Investors looking at buying and financing real estate property investments.

It is still very evident today that Australian house prices are among the highest in the world on a range of different measures. So, if you are a High Net Worth Investor and you are looking at owning investment flats or buying retail or commercial properties, then building a property portfolio with real estate property investments should help you to achieve your financial goals.

Property Investment Portfolio and Purchase Costs

Many mortgage brokers, lenders and banks do not have the required comprehensive knowledge about all the types of funding structures required by High Net Worth Investors who are looking at buying real estate property, and in particular if you are also looking at financing the arrangement under a trust structure. So, you should take time to seek expert advice from a professionally qualified finance broker as he/she can help you “structure your property investment finance” and create an investment portfolio. To help you during the decision process, here is a list of things to consider and which you should discuss with your finance broker:

Borrowing Power - To help you determine the amount of debt you can take on, your finance broker should be able to determine the extent of your borrowing power (i.e. ascertain how much you can borrow?).

Loan Comparisons - To help you make simple loan comparisons, your finance broker should provide you with a list of finance products and options.

Rental Income - Your finance broker should discuss how rental income can cover the total costs of your investment property.

Purchase Costs - You should consider some of the typical purchase costs, such as loan establishment fees, conveyancing costs and stamp duty. Lenders Mortgage Insurance (LMI) premium can also be payable if the total amount you are borrowing is more than 80% of the total security value of your property.

Property Investment Strategy - To devise a suitable optimum property investment strategy, your finance broker should understand your financial position by working closely with your accountant and solicitor.

Loans Under Trust - Your finance broker should be able to help you in choosing the best trust loan option.

Useful Tips

So, now you know how choosing an experienced and professionally qualified finance broker can help you to create a successful and highly efficient funding structure. Here are some useful tips to also consider:

Taxation and Legal - Speak to your accountant and solicitor to take advice regarding:

>> Financing under a trust structure as trusts can provide advantages like asset protection and tax benefits

>> The benefits of negatively gearing your real estate investment property

>> The range of property investment tax deductions you may be able to claim

Personal Income and Expenses Budget - To enable you to determine the extent of your financial situation, establish a budget of all of your income as well as working out all of your expenses.

Find a Suitable Property - Have a clear idea of the type of real estate property you want to buy and its location.

Pre-Approved Finance - Discuss the possibilities of pre-approved finance with your broker because pre-approved finance gives you the assurance of credit.

So, if you are a High Net Worth Investor, keep these tips in mind because they will ensure a successful investment property deal.