Property is valuable asset which sure will earn you profit if you buy the right one and can handle the management well. Before that, you need to know how to get loan for your property investment. When it comes to property owning, it involves big money. Purchasing property in one shot with all your saving is possible. However, property investment involves many elements such as tax, management, etc. Those require lots of money. Even though the profit is promising in property investment, you need to manage your finance in the best possible way.
Get loan for your property investment from the bank
Investment loan is one of the best solution so you can afford to fund your purchase in property wither a house or unit. The best and common place to earn investment loan is bank. However, you need to make sure that you can secure the loan and convince the bank to give the loan you need. Here are some tips to do it:
- When it comes to asking for investment loan, one thing you cannot avoid is deposit. It is highly advisable to have at least 10% deposit in your account if you want to secure the investment loan from the bank. Some bank may require different standard for the deposit amount but 10% is safe line. If you have your 10 % deposit, the chance for the lender to give you the loan is higher. The bank needs some reassurance before giving you what you need so they won’t be doubtful to your ability to repay in the future.
- It is quite often that the bank looks for the type of property you invest in. If the investment you purchase is promising then it is easier to get loan for your property investment. A property which own more scarcity values are more desirable for the bank. If it is undervalue, it is likely you have lower chance to get loan for your property investment.
- You need to pay attention on your rental yield as well. This what the bank consider before giving you investment loan. This consideration will lead you to get the right amount of money you can borrow. Your monthly property repayment and your monthly achievement from renting your property should not have big gap or else the bank won’t give you the amount of loan you need.
- Another thing that will influence the bank to give you investment loan is your financial management. You need to make sure that your finance is well-arranged with good credit in your record. If your finance seems to be unstable, the bank will hesitate in giving you the loan.
It is understandable that proposing investment loan to a bank is nerve-wrecking for you. There are many possibilities but if you can prepare everything well then you won’t have to worry. If you have a hard time to get loan for your property investment, it is recommended to ask for advice from professional financial planner.