Investing in Property

Much like getting your first home loan, refinancing can feel complex at first. But with the right guidance, it can open new opportunities to strengthen your financial position and achieve your next goal with confidence.

Speaking with your Alcove broker early in the process can help you understand your options, feel in control, and find the loan structure that best supports your lifestyle and plans.

Reasons for Refinancing
Refinancing simply means switching from one home loan to another. This might involve changing lenders, or adjusting your current loan product with your existing lender. The key is finding the structure that best suits your unique needs and long-term goals.There are a few common reasons homeowners choose to refinance:

• To secure a lower interest rate, reduce fees or simplify repayments
• To switch between fixed and variable rate options
• To access the equity in your home for renovations, investment or other financial goals
• To add or remove someone from the mortgage or property title

No matter your reason, the right refinance strategy can improve cash flow, reduce costs and give you more flexibility for the future.

Even if you’ve bought property before, choosing the right investment requires a different kind of research and mindset. It’s less about emotion and more about potential.

Start by understanding where the opportunities lie. Look into suburbs that are forecast for growth, local rental demand, and average rental yields. Review median house and unit prices in the areas you’re interested in and consider which property types perform best as rentals.Online property portals such as view.com.au can be a great place to start your research. You can also visit open homes and auctions for similar properties to get a feel for local demand and sale prices. Saving and tracking listings can help you see how properties move and what drives competition.When assessing potential investments, make sure the property aligns with your broader goals. Ask yourself:

• Does this type of property suit my strategy — house, townhouse or apartment?
• Is there strong rental demand in the area?
• What condition is the property in, and what maintenance might be required?
• Does it meet rental standards and expectations?
• Does the location offer access to amenities, transport and infrastructure that support long-term value?

Answering these questions will help you decide whether a property or area is truly suited to your investment goals. Like any important purchase, the right property should reflect your strategy, not just your preferences.

Owning an investment property is an ongoing commitment. Once the purchase is complete, there are important decisions to make about how it will be managed.

If you plan to rent your property out, you can choose to work with a professional property manager or manage it yourself. Each approach has advantages and considerations, so it’s worth exploring which option best suits your time, confidence and experience.

Even with a property manager, it’s important to understand your responsibilities as a landlord. Familiarise yourself with the current rental regulations and the rights of both landlords and tenants. These can vary from state to state and are updated regularly, so keeping informed will help you avoid surprises and maintain a positive rental relationship.

If you’re ready to take the next step, book a complimentary consultation with Alcove. Our team can help you review your lending options, structure your investment strategy, and secure a solution that supports your long-term goals.

For many homeowners planning their next move, one of the biggest questions is whether to sell your current home first or buy your next one first. Timing these transactions can be challenging, and the right approach will depend on your financial position, market conditions and personal circumstances.

If you sell first, your finances are unlocked and you’ll have a clear picture of your budget for your next purchase. You also avoid the pressure of having to sell quickly to meet a settlement deadline. The trade-off is that you may need to find temporary accommodation if you don’t buy within your settlement period.

If you buy first, you’ll have the comfort of knowing where you’re moving next and can avoid paying rent in between. However, this can add pressure to sell your current home quickly to fund your new loan, which may affect your negotiation power or timing.


Your Alcove broker can help you work through these options and identify the best approach for your situation.


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Selling Your Current Home

Selling your home can be a smart way to release funds for your next purchase and simplify your finances.
Pros:


• Frees up equity to purchase your next home
• Avoids managing multiple loans or investment properties
• Provides clarity and flexibility in your next move

Cons:

• No longer holds the potential for future capital growth
• Emotional difficulty in letting go of your current home
• Associated selling costs such as marketing, agent fees and legal fees

When selling, it’s important to factor in the costs involved, including conveyancing, styling and potential rental accommodation during your sales campaign. Once your property has sold, your conveyancer and lender will manage the discharge of your existing mortgage at settlement.


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Keeping Your Current Home as an Investment

If selling doesn’t feel right, you may choose to hold onto your current property and convert it into an investment.Pros:

• Retains an appreciating asset in your portfolio
• Potential rental income or short-stay returns
• Access to certain tax deductions on investment expenses

Cons:

• Larger financial commitments and multiple loans to manage
• Potential limits on borrowing power for your next purchase
• Ongoing responsibilities and costs of managing a rental property

Holding your current property can diversify your portfolio and support long-term wealth creation, but it’s important to ensure it aligns with your broader financial goals. Your Alcove broker can help assess whether this approach is suitable for your circumstances and structure your lending accordingly.

There are two main ways to buy a property in Australia, auction or private treaty. Depending on which way you purchase your home, different rules apply and these can vary from state-to-state. If you are confused or intimidated by the buying process, you may want to engage the services of a buyer's advocate. This will come at an extra cost, so it's important to do a cost-benefits analysis and decide whether this is right for you.

Making an offer on a property involves contacting the listing agent and tolling them what you arg prepared to pay. This can be as simple as a phone call, however the agent may want you to formalise the offer in writing, If you purchase via private treaty, a cooling off period will apply. This period is typically two to five business days and allows the buyer to do research into the property and cancel the sale if they change their mind.

you're intending to bid at an auction, make sure you familiarise yourself with the rules. You should also decide how much you are willing to pay for the property und stick to it - regardless of how frenzied the bidding gets. Cooling off periods do not apply to properties bought at auction, so make sure you are certain before you bid.

Conveyancing and settlement. Conveyancing is the legal process of transferring ownership of a property from the vendor to the buyer. This can be done by a conveyancer or a solicitor. The process can include preparing transfer documents, reviewing contracts for sale, sharing documents with your lender and coordinating settlement

Settlement is when ownership of the property is transferred from the seller to the buyer. This process is managed by the seller and vendor's solicitors or conveyancers and the buyer and seller are not required to be present.

Steps that will occur as part of the settlement process include a final inspection of the property, registering your mortgage against the title of the property, making the final payment to the vendor, and receiving the keys to your new home