Our sister company, Custom Financial Solutions (CFS), knows a thing or two about choosing the right home loan when you’re investing in Perth’s property market.
In this post, we chat to CFS managing director Yasmin Georgiadis for her thoughts on the real estate sector, how Covid-19 is affecting investors and what you should be doing with your home loan right now.
Tell us a bit about yourself and Custom Financial Solutions?
Custom Financial Solutions WA is a sister company of Rentwest – we’re all about helping our clients achieve their financial goals, whether that’s getting the right finance for an investment property you’re looking at, or the right home loan when you’re buying your first home. Everyone has a different situation, so we make sure we tailor our approach to get you the results, consideration and expertise that we’re known for!
What do you enjoy most about your job?
I get excited being a part of my client’s journey and building a long-term relationship with them. Each client I deal with has a different story and journey and I enjoy being there to assist them with their financial goals – and celebrate their milestones along the way.
Is 2020 a good time to be an investor right now, and if so, why?
If you’re thinking of investing, it’s a great time to step into the market – especially because you can take advantage of low-interest rates, competitive packages and incentives offered by lenders, as well as a strengthening real estate market and great rental yields.
What’s the Perth market like at the moment?
There’s been an increase in activity in Perth’s real estate sector over the past few months – and the vacancy rate is at a 12 year low of 1.6 percent, so rental prices may very well be on the rise. While a higher rental income may be an option, another way to increase rental yield is to reduce your investment expenses. We’re working with Rentwest’s landlords at the moment in order to review their home loans, making sure they have the best interest rates and most suitable product. It might be something you put off doing, but it really can save you both time and money.
How has COVID-19 impacted on lending?
Money has never been cheaper! Interest rates and repayments are at an all-time low – so it’s extremely important to check your home loan and capitalise on the lower rates. We’re also seeing that many banks are now offering cashback to gain your business, so it’s a great time to consider consolidating or refinancing.
What changes have happened and how are they impacting investors getting a loan?
Lenders have changed their policy around employment and many are considering Jobkeeper payment as a form of income. You may be eligible to refinance your home loan to another lender to save on fees and interest, so it’s definitely something to consider if you’re in that situation.
What do all investors need to know about getting a home loan?
First up, it’s not just about getting the lowest interest rate! It’s actually really important to review your overall financial goals to ensure the home loan product you have is best suited to you – and this can change over time as your lifestyle or circumstances change.
Should investors be switching up their home loan right now and if so why?
Yes – refinancing to a different lender or staying put with the same lender but switching to a more suitable product is definitely something to consider, due to the record low-interest rates out there at the moment. Everyone’s situation is different so we draw upon our 30+ years of experience and expertise to deliver the desired outcome for each client.
Any particular home loan products that are safest right now?
We actually have access to over 30 lenders offering a range of different products, so it’s hard to pinpoint just one – but I will say that we’re finding both fixed and variable rates are very competitive at the moment. What you choose all depends on your circumstances and financial goals.
How tricky is it to refinance and how long does the process generally take?
Refinancing is a similar process to taking out a home loan in the first place – a good understanding of your needs and goals can help us find the best solution, and it always helps if you have all the information needed to support the lending process. It also helps avoid delays. At CFS, we guide our clients through the loan process and provide them with info and support every step of the way – like our guidance, there are no fees for our service.
Any property investing tips or tricks?
One of the most important things to consider is your budget: know your expenses and the ongoing costs associated with an investment, as well as sticking to a property value. It’s a good idea to speak with a professional to assist with things like negative gearing, portfolio diversification and setting a realistic goal.
If you’re looking to refinance or want some advice on your investment loan you can find out more at customfinancialsolutions.com.au.
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