Bernie Lewis Home Loans have seen an uptick in our first homeowner clients who had purchased their home within the last decade, now seeking to buy their next home. This is largely in part by a desire to utilise the growth recorded in their current property value to upgrade to their next home in a higher price tier, or even to obtain an investment property to expand their asset position.
There are 3 common pathways to purchasing your next home, all of which a Bernie Lewis Home Loans Mortgage Broker can expertly facilitate for you:
- Subject to Sale – Selling your existing home to buy your next home
- Transition to Investment – Retaining your existing home as an investment and using equity to purchase your next home; or retaining your existing home to live in and using equity to invest in a rental property.
- Bridging Finance – Buying your next home prior to selling your existing home
Today we are focusing on the trend of Transition to Investment, noting a preference toward retaining assets for future benefit where financially possible.
Due to the heavily increased rental market in Australia, property owners are keen to invest, with promising rental yields to capitalise on, and the potential for further growth in property value over the coming years.
Transition to Investment is a popular way to expand your wealth portfolio with hope for further capital growth, to increase your net income position, or to maximise taxation benefits associated with owning a negatively geared investment property.
With net migration set to increase and high pre-existing demand for housing, it is seemingly a promising time to invest in residential real estate. It’s no secret that some in the Baby Boomer generation have really succeeded and benefitted from property investment, and that is what is inspiring the next generation to do the same.
It is also a really flexible way to purchase your next owner-occupied home, should you have the borrowing capacity and equity position to do so. This strategy can eliminate the high interest rates and complexity of bridging finance. It also negates the stress of buying your next home subject to sale of your existing home, and in turn having to align simultaneous settlements or source interim accommodation.
If this is up your alley then your first point of call should be to speak with a Bernie Lewis Home Loans Mortgage Brokers to establish your equity position, borrowing capacity and in turn project your purchase capacity. Our specialist team can help you determine if owning an investment property is possible and beneficial for you, or if you should consider one of the other pathways based on your position. Simply hit the contact us button or call us on 08 8300 8300, and we’ll quickly determine if we can help you!
