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In episode 12 of the Property Investing Journey series, Mike turns his attention to the financial element of property investment and gets the inside track with Mortgage Broker, Nick Koutsos, Managing Director of BestLend.

With the heat in the property market looking set to continue unabated for the foreseeable future, one essential element for the majority of property investors is dealing with financiers. Mike and Nick talk through the fundamentals of bank lending and Nick shares his insights into how to best meet the standard banking parameters.

With stories in the media of double digit price growth and multiple bids for properties, timing the market and lending approvals are high on the list for potential purchasers. To make the process easier, Nick explains in clear terms the parameters around Lendor’s Mortgage Insurance, serviceability and Loan-to-value ratios and what you really need to understand when it comes to borrowing.

Mike and Nick wrap up the conversation by looking at investment structures and sharing some tips on planning for portfolio growth.

Whether you’re in the market as an owner-occupier, or looking to expand your investment portfolio, you’re sure to find the information provided in this podcast invaluable.

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Podcast Transcript

Mike turns his attention to the financial element of property investment and gets the inside track with Mortgage Broker, Nick Koutsos, Managing Director of BestLend. Mike and Nick talk through the fundamentals of bank lending and Nick shares his insights into how to best meet the standard banking parameters. Nick explains in clear terms the parameters around Lendor’s Mortgage Insurance, serviceability and Loan-to-value ratios and what you really need to understand when it comes to borrowing.

What we cover in this episode

  • Overcoming the finance hurdle
  • Is a full 20% deposit really essential to move forward
  • Lendor’s Mortgage Insurance (LMI)
  • The Loan-to-Value Ratio (LVR) sweet spot
  • The advantage of using a Mortgage Broker
  • The variables of serviceability, rental income and banking policy
  • Financing multiple investment properties

Quotes

“I know rates are 1 and 2% at the moment but what happens when rates go up to 3 or 4%? You’ve got to really sit down and go through it with them ‘cos heaven forbid, you don’t want to put someone into a really bad position“ Nick 5:30

“Is it better to be in or out of the market? Once you’ve got a deposit, get in”  Nick 8:45

“It’s all about planning when you’re first starting your property investing journey.“ Nick 16:00

“I’m not a big fan, personally, of crossing securities. Trying to keep each property separate…it’s trying not to keep all your eggs in one basket…you’ve got to look at it like a business “ Nick 16:20

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