Mortgage Brokers Reveal How to Manage Mortgage Debt for Maximum Returns
Announcement posted by Purely Finance 22 Jul 2015
Mortgage brokers with years of experience in Perth provide five step system for managing mortgage debt.
Perth, WA, 22 July 2015 - Buying a home is usually the largest investment someone will make in their lifetime. For homeowners who double as property investors, they make numerous investments on this scale. To maximise one’s current and future financial situation, it is important to manage mortgage debt efficiently.
Recently, Nick Aves, Director of Purely Finance, a firm of mortgage brokers and financial planners in Perth, revealed five mortgage debt management techniques that he often recommends to his clients on his company blog. Mr Aves is a 30-year veteran of the finance industry and his staff consists of nine mortgage brokers and financial planners with close to 200 years combined experience in the industry.
According to Mr Aves, it is of paramount importance to manage one’s mortgage debt properly to be a successful property investor: “Small investors sometimes don’t realise how important it is to manage mortgage debt efficiently. Small mistakes and oversights can cost the small investor thousands of dollars down the road.”
Consequently, Mr Aves recommends five techniques in particular to help investors manage their mortgage debt so they can pay off their principal residences quickly and maximise returns and capital gains on their investment properties.
Buffer for Changes in Interest Rates
While interest rates are at an all-time low, they never stay at historic lows forever. Interest rates rise and fall in alignment with other factors and segments of the economy. Mr Aves recommends that all investors and homeowners should have a “buffer” in their budget that accounts for rises in interest rates. This is done by computing how much money a repayment would cost if the interest rates were at their highest and ensuring that there is enough money to pay the repayments in the budget.
Emergency Fund
Mr Aves also recommends having an emergency fund, especially for investors. This can protect a homeowner or investor in case of a loss of income, whether it is work related or due to prolonged vacancy in an investment property. Properties sometimes require major repairs. Mr Aves not only recommends an emergency fund, but that homeowners and investors always make sure their wealth protection plans are up to date.
Home Loans vs Investment Loans
Mr Aves recommends that home loans are principal and interest loans while investment loans are interest only. The interest on home loans is not tax deductible, but the interest on investment loans can be deducted. Mr Aves recommends paying the principal of the home loan off as fast as possible to provide more security, flexibility and tax benefits. Mr Aves also recommends using variable interest rates for investment properties because they provide more flexibility.
According to Mr Aves, “Everyone’s financial situation is different, but these five techniques are a great start. However, you should always have a mortgage broker and financial planner go over what you are doing to make sure you maximise your income.”
Purely Finance is a firm of mortgage brokers and financial planners in Perth. They specialise in mortgages and financial planning for people who want to build wealth through property. They provide access to home and investment loans from multiple lenders and and a full line of wealth protection products. To learn more, call (08) 9543 8888 or visit their website: http://www.purelyfinance.com.au/.
Recently, Nick Aves, Director of Purely Finance, a firm of mortgage brokers and financial planners in Perth, revealed five mortgage debt management techniques that he often recommends to his clients on his company blog. Mr Aves is a 30-year veteran of the finance industry and his staff consists of nine mortgage brokers and financial planners with close to 200 years combined experience in the industry.
According to Mr Aves, it is of paramount importance to manage one’s mortgage debt properly to be a successful property investor: “Small investors sometimes don’t realise how important it is to manage mortgage debt efficiently. Small mistakes and oversights can cost the small investor thousands of dollars down the road.”
Consequently, Mr Aves recommends five techniques in particular to help investors manage their mortgage debt so they can pay off their principal residences quickly and maximise returns and capital gains on their investment properties.
Buffer for Changes in Interest Rates
While interest rates are at an all-time low, they never stay at historic lows forever. Interest rates rise and fall in alignment with other factors and segments of the economy. Mr Aves recommends that all investors and homeowners should have a “buffer” in their budget that accounts for rises in interest rates. This is done by computing how much money a repayment would cost if the interest rates were at their highest and ensuring that there is enough money to pay the repayments in the budget.
Emergency Fund
Mr Aves also recommends having an emergency fund, especially for investors. This can protect a homeowner or investor in case of a loss of income, whether it is work related or due to prolonged vacancy in an investment property. Properties sometimes require major repairs. Mr Aves not only recommends an emergency fund, but that homeowners and investors always make sure their wealth protection plans are up to date.
Home Loans vs Investment Loans
Mr Aves recommends that home loans are principal and interest loans while investment loans are interest only. The interest on home loans is not tax deductible, but the interest on investment loans can be deducted. Mr Aves recommends paying the principal of the home loan off as fast as possible to provide more security, flexibility and tax benefits. Mr Aves also recommends using variable interest rates for investment properties because they provide more flexibility.
According to Mr Aves, “Everyone’s financial situation is different, but these five techniques are a great start. However, you should always have a mortgage broker and financial planner go over what you are doing to make sure you maximise your income.”
Purely Finance is a firm of mortgage brokers and financial planners in Perth. They specialise in mortgages and financial planning for people who want to build wealth through property. They provide access to home and investment loans from multiple lenders and and a full line of wealth protection products. To learn more, call (08) 9543 8888 or visit their website: http://www.purelyfinance.com.au/.