Q: What are the three key steps to get your 3rd property?
A: We believe that the following 3 steps are important to you purchasing 3rd property:

Step 1
To find the right finance broker who knows the best property investment to refinance your current loan and get the maximum funds from it.
Step 2
To talk with the right person about the property ownership impact on property protection, maximum income and best result when it has been sold.
Step 3
To get the loan approved before signing purchase contract, make sure the loan serviceability has been adjusted into the best position.

Q: What do you believe is the 3 key things to buy the 3rd property?
A:We believe different people may have different opinions on this question. According to specific situations, they might consider very different combination from the following items. You can simply select 3 key items from them and give us a call to see if we can make a realistic and close analysis on your own situation.

• Get the right property to fit with your investment portfolio.
• Calculate the loan repayment vs. incomes from the property included tax benefits and make sure the loan repayment has been adjusted into the best position.
• Analyse the land and building costs about your targeted property and get the best price of the property.
• Get the best location of your property to make sure the property has the best capital gain in future.
• Make the cash available for 10% purchase deposit.
• Understand the property ownership impact on property protection, maximum income and how to use the advantage to ensure the best result when you sold the property.
• Get the best interest rate and fees for your new property purchase and make sure your loan is at the lowest cost.
• Find finance broker who knows property investment and refinance your current loan and get the maximum funds from it.
• Ask finance broker to restructure your loan to get maximum negative gain from tax for all your investment properties.
• Sell property at the right time and get the best price to maximise the best profit from the property.

Q: How to judge if your loan fit with your property investment purpose?
A:If you already have invested in three or more properties or if you are doing property investment, the most frequent questions from your group might be the following:

• Does my loan fit with my property investment purposes?
  
• Does my loan bring me the maximum return?

• What is the current value of your home? What is the loan balance for this property?
• What was the purchase price of your 1st investment property? How much you have borrowed for this investment? Did you use your home equity to fund this purchase? What is the current rental income?
• Does your loan include the maximum tax deduction from your property investment?

Q: How to buy a 3rd property without your own cash deposit?
A: If you have owned a home or two properties for a few years, you will have built up quite a bit of equity in your properties. Instead of finding a cash deposit to buy a 3rd property, you can use this equity as the deposit. That means you don't need thousands of dollars in savings to get started, you can definitely buy your 3rd property without your own cash contribution.

Q: What should you buy for the third property? Home? Commercial? Or Investment?
A:So many people think that buying an investment property is only for property investment and buying a home is not a property investment. From our experiences, we can say that in most cases, buy a big home is the best property investment. Why? Because we are not only looking at the meaning of the word property investment, but we are more focus on how much money you can get from the result.

For many small business owners, buy a commercial property for themselves to operate their business is also the best way to both property investment and business operation. From that, they get many direct benefits.

Therefore property investment is not only purchase an investment property, but also include buy your home or commercial properties. The fact is we are more focus on the final income results and benefits the property can bring us after many years of owning this property.

Q: What are the key issues to use Family Trust for Property Investment?
A:Family trust is a great vehicle to carry out real estate investment in Australia. How to use family trust for real estate investment is the top level question in this game. It requires you to have great knowledge and excellent experiences in this area.
Family trust can have 3 main benefits to real estate investment: 1) share incomes with family members; 2) easily pass the property to next generation of your family member, and 3) good real estate investment protection.

But, who should be the trustee? How to select the right trustee? These questions are not easy to answer and need to be analyse and compare individually.Loanfor3properties can assist you in this analysis and make you to be the winner in this game.

Q: How to become a developer of your 3rd property?
A:Many property investors want to build their properties at "below market" prices and create their own capital growth. You can become a property developer by building your investments on land you currently own or land from market source.
There is a procedure for you to build your 3rd property:

• Find the right site in the right location to meet your objectives;
• Evaluate town planning and development issues;
• Undertake detailed feasibility studies including a comprehensive design and cost assessment for your independent validation prior to any final commitment;
• Assist with negotiation to buy the land;
• Obtain town planning permits (DA) if not already approved;
• Prepare full working drawings and project specifications including engineering services and structural plans;
• Obtain building quotes;
• Appoint a master builder on favourable contractual terms, checks all contractual arrangements and oversees the construction from start to end;
• Organise surveying and subdivision into individual titles;
• Find out a professional mortgage broker to discuss the key issues, make sure you can get the maximum funding from bank with lowest cost;
• Ask your financial broker to re-assess your funding, purchase plan and profitability from this property;
• Keep you updated every step of the way and most importantly remove the day to day worries of running a real estate development.

Q: How do I structure my investment loan?
A: AtLoanfor3properties we believe having the right type of loan structure is one of the very first steps in achieving any investment objective. Investment property provides enormous opportunity for investors, and if you prepare your finances in a structured manner it may result in increased leverage, better profit, and more tax benefits from governments. CallLoanfor3properties today to arrange an appointment with a consultant to discuss your investment loan structure.

Q: Why should you look for refinance?
A:Mortgage refinance is always the smartest way to save money. By obtaining a better mortgage type with new interest rate, you can raise the funds that will enable you to buy more properties, get better cash flow control, lower monthly payments, faster pay off of your home loan and better tax benefits for your investment loan.

Of course, refinance do required some costs, but a better refinance will deliver you with a better financial result after off-set these costs involved in refinance. AtLoanfor3properties we will provide you with a full calculation of the finance benefits with a number of options to suit your needs before we carry out your job.

Q: Should I refinance my existing loan when I buy investment property?
A:Property investors are aware of the importance of using little or none of their own money to acquire and hold on to more properties. Refinancing provides the vehicle for that. By refinancing investors can better manage their cash flow and most importantly, refinancing give them more equity to purchase their next investment property.

If you have previously obtained a mortgage throughLoanfor3properties, the refinancing process will be relatively straightforward. We keep all your records on file so that we can quickly activate your refinancing process. All that is usually required is a quick update on what has changed since your previous application. If you are new to us, all you need to do is to fill a new loan application.

The main difference in how we handle your refinancing request, compared to other companies, is that we pay special attention to the finance benefits of your property investment as a whole project, not just consider the loan arrangement to ensure that you get maximum value for your new mortgage. At the same time we plan ahead for your future.

Q: How often should I refinance?
A:Anytime when your financial situation changed, you purchased/sold new property, property market change, interests changed or the usage of your property changed and so on. The key measurement of whether you should refinance your current mortgage is whether refinance can bring you better benefits, if the answer is Yes, you can carry out your refinance anytime.

At Loanfor3properties, we encourage our clients to make an appointment to review their mortgage every 12 months.

Q: What are the benefits you are looking for from Refinancing?
A:You should not only look at the interest rate, but also consider the following areas:

• repayment methods to fit with your finance circumstances;
• loan structure to bring benefits on tax reduction;
• control finance risk by taking fixed rate;
• raise more funds for further investment;
• prepaid of interest for next 12 months to get more tax benefits;
• better management of your loan repayment;

Q: In refinance, what can you do if the valuation come shortfall?
A:A valuation that comes back short regarding your expectation is a very common issue in refinance. It could be explain by your expectation fixed too high or the valuation company too conservative. If you believe the valuation price should be much higher than the valuation price, then the following documents could help us to push your valuation price higher:

• The original sales contract of you property;
• The sales evidence surrounding your property in last 6 months, when it been sold, on which price, how big of the land, how many rooms…
• Last valuation report, from which valuer company and when;
• Land size of your property, sales price of average land cost in surrounding your property;
• how big is your building size and what is average cost per square meter;

Q: Why should you get a loan pre-approval first?
A:Pre-approval means is a loan approval based only on your ability to repay a loan, without knowing which property you buy. It means after getting the loan pre-approval you can now sign any purchase contract without fear; as bank already gave a commitment of lending you money, knowing how much the bank will lend you.

From that you do not need to put financial approval conditions into purchase contract, it will makes your offer more acceptable as you are a "qualified buyer" and real estate agent know you are serious. Your offer to purchase the property will sound better to a vendor as well as other buyers may have to put financial approval conditions into the purchase contract but they may not have the financial approval later on.

A pre-approval also protects you, and most importantly you have a clear idea of what you can borrow, what you can afford, and what you can spend. Instead of going to banks,Loanfor3properties can help you in getting the pre-approval.

Q: Is Rate a Key Issue When You Choose A Loan?
A:Our answer is NO. When you decide to purchase a property, rate should not be the only thing in your concern. From our 10 years of experience in mortgage industry, we found lowest rate is not always the right choice for our customers. Not like TV, car or a simple table, which can be physically touched, felt or tested, mortgage is invisible and untouchable; it is a knowledge based product.

Therefore, when you choose your loan, you should not just judge it on the lowest rate, the better way to do so is to get a professional broker to compare between different loan products, features, functions and usages, analyse your own situation related to these things, then structure your loan regarding all of the above.

Q: Should I choose a fixed-rate or variable-rate loan?
A:If you choose a variable rate loan, naturally the interest rate can rise or fall depending upon banks own decisions and therefore your interest payment will rise or fall in line with rate movements. For many customers, variable rate loans are popular as a means of using the funds in mortgage with flexibility. Extra loan reduction payments can be made at any time and also it can be redrawn back at anytime when it is necessary.

Choosing a fixed rate loan means you can lock your interest in at a set rate for 1 to 10 years and control your financial risk. So if you think interest rates have hit rock bottom or that rates may raise you can certainty taking this option.
Some borrowers like a bet each way. AtLoanfor3properties you can fix a portion of your loan and leave the remainder as variable. This way you get the best of both worlds.

And absolutely,Loanfor3properties can help you switch your variable rate to fixed rate at anytime during the term of your loan. Similarly you can 'split' your loan at any time. A Loanfor3properties loan consultant can best advise you on this option and what are required to do it.

Q: What is the meaning of rate lock?
A:Rate lock is a technical word during the loan application to settlement. When you start to apply a loan and decide to take fixed rate, then you need to consider whether to take rate lock. Normally, the fixed rate is only effective at the settlement time. For example you tell your lender or broker that you wish take a 3 years fixed rate at 6.99% pa, your lender approve your loan at this rate and all of loan offers you sign are at this rate, but, if before your loan settled, the 3 years fixed rate moved to 7.99% pa or 6% pa, then you loan will be on the new 3 years fixed rate, not 6.99% pa anymore.

Therefore if you wish your loan settled on 6.99% pa for 3 years, you have to take a Rate Lock.

Most banks allow you to pay a contain fee to lock your rates for 3 months, in another words, your loan has to be settled within 3 months you locked your rate, otherwise, it does not work for you.

Q: Should I lock my rate?
A:We believe that most people should think deeply on this issue before carrying out the action. However, to answer whether or not to lock your rate, the best way is to consult your financial broker and then decide. Here we give some general reasons for locking or “floating” (being unlock) the rates.

• If rates rise, your rate and payments will increase. Interest rates can move significantly within hours based on news headlines (such as unemployment statistics). Floating can be very expensive.
• If rates fall, you can inform your lender that you do not wish to execute the rate you had locked but to choose the new rate.
• Also, locking your rate forces your lender/bank to commit. If the rate you have been quoted is a lie, attempting to lock is one of the best ways to "smoke it out".

• You are quite certain that rates will drop more than expected and the expectation point is critical here: if the market expects rates to drop, that drop is already reflected in mortgage rates. You will only benefit if rates drop more than expected.
• Your lender/broker/rep commits to lower your rate if rates stay flat. Some loan providers will do this since lenders pass along savings for loans that float. These savings are slight, but if interest rates appear very stable, the risk might be worth it.
• You can afford to lose the bet and make higher payments if rates rise.