Financing

Choosing the ideal mortgage is a crucial element of any property investment strategy. Whether its considering releasing equity from your primary residence to invest with PDS or obtaining financing for the acquired assets within your portfolio, our mortgage broker works to provide the best products for our clients with the best terms.

Equity release options

Many people have seen the price of their home increase rapidly in recent years. The difference between your house value and the outstanding mortgage is called equity. By releasing equity in your home you can borrow additional money at low rates and use this money to invest with PDS.

Using the equity in an existing property allows you to increase your overall investment potential. You can easily work out how much equity you have in your existing property with a simple calculation:

Equity in your home = Value of existing property - Outstanding loan balance

When you borrow funds for investment purposes, you are using a technique known as gearing. An example of a taxation benefit associated with this type of investment is negative gearing. If the interest payments on your loan are greater than the rental income you receive from your new investment, you can use the difference as a tax deduction. Using this method can reduce your assessable income and so also your overall taxation liability.

When considering releasing equity from your property, it is extremely important to seek out proper advice. You must understand what is involved in order to make decisions that suit your circumstances.