28 Dec 2021

What Happens When You Buy Several Properties?

In Australia, an estimated 10% of the population owns more than one property. Many of these individuals are real estate investors. Others simply own a second home or vacation property. Once an individual starts to buy several properties, they become investors in the eyes of the Australian government.

Owning a second property is nice. It’s a nice vacation home to retreat to on the weekend, for the summer, or on special occasions. Other homeowners purchase a second property for their children. By taking this route, the homeowner increases their borrowing capacity. It allows access to favourable loan terms including home loan rates.  

Once the individuals start accumulating additional properties, their status changes. If they acquire a multi-unit property, they increase the holdings in their portfolio too. 

A portfolio of properties does several things. It increases the individual’s borrowing capacity. The situation can also make the individual a financing risk. Too much debt becomes a liability. Also, too many units that can remain vacant pose a risk for the lender. 

Therefore, a portfolio of properties becomes a balancing act. The portfolio is a great way to build wealth. It also has several responsibilities. 

Mortgage House loan specialists work with individuals who hold portfolios and are interested in putting together one. 

Buy Several Properties Conclusion

If you buy several properties, you walk into investor territory. This offers several benefits. It also requires different tax paperwork and legal structure. Individuals interested in putting together a portfolio of properties can contact Mortgage House to obtain financing. Contact our loan specialists.

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