Property Investors

Why Invest in Residential Property?

Real Estate, compared with most other forms of investment, has a relatively high ratio between security and income yield. The dificulty with most other forms of investment is that they witherrepresent poor security or they provide a very modest and uncertain return. Their ratios, between security and income are low.

Compared with stocks and shares, the property market has remained relatively stable and has provided a good hedge against inflation. Property assets are tangible and you can take real control of them through improvements or renovations, and there are significant tax benefits and the possiblity of 'negative gearing'. In addition, as rent rarely goes down, the returns from your investment tend to be higher.

First Time Property Investor?

You may have an owner/occupied property and have equity in this property to contribute towards the purchase of an investment property. Or, you may be property buyers who wish to continue renting or living at home and purchase a property for investment.

You are probably uncertain if you have sufficient equity to contribute towards an investment property and so are unsure of how much the purchase will affect your cash flow and standard of living. Usually you will wish to hold the property for the long term to provide for future wealth - this means not selling your investment property for at least 5 - 7 years - the average length of the housing cycle.

Experienced Property Investors?

When it comes to making the most of an investment property, finding the right home in the right location is only half the battle; finding suitable finance is the other half. There are many options available and the choice of home loan will ultimately depens on your particular investment strategy and the type of property.

You may already own one or more investment properties.
You could be considering the purchase of additional properties and are uncertain of the best finance structure.
Have you asked yourself - Is there a better finance deal out there?
Could I purchase a better property if I financed with a different lender?
Am I restricting my options by having all my loans with one lender?
I do not want to put my own home at risk so is there a way to minimise this risk?
Is my lender giving me the most suitable finance?
Can I save money by refinancing?

You may not have the time to search through the myriad of lenders and loan products to find the right deal.

How Can Pfeiffer Finance Help?

Our finance specialists look at the appropriate way to structure the finance (in conjunction with your accountant) to gain maximum tax and other financial benefits. We establish a structure that is suitable for your long term financial benefit - not just a short term fix.

We recommend structures that enable good use of your cash flows - therefore freeing up cash for further investment!

We also show you the how to purchase mutiple properties through a structured loan portfolio and using available equity most efficiently.

There are also many traps for the experienced property investor. These include:

using the same lender for all your finances
allowing the lender to "cross collateralise"properties, decreasing flexibility
paying principal and interest on investment property loans
purchasing the property and borrowing in the incorrect name (therefore missing out on the best taxation and other benefits)

For further information or an obligation free discussion on how we can guide you through the process, contact our experienced advisers on

02 4961 0187 or via our contact us page.