Expert Advice by Helen Collier-Kogtevs, 6/10/2015

There’s a mistake that many first-time borrowers make and I see it happen almost every single day – or at least a couple of times a week.


This mistake is assuming that if a big, seemingly trustworthy organisation like a bank is prepared to lend them a certain amount, then that’s how much they should borrow.


I can’t tell you how wrong this assumption is!


Let’s say your bank is willing to lend you $500,000. You do the sums and work out that you can afford the repayments on that mortgage, particularly once you account for your tenant’s rent and your tax return. You’re ready to sign on the dotted line…


But you haven’t thought about your ‘rainy day’ strategy.


What if an unexpected scenario hits – like the Global Financial Crisis (GFC)? Or you lose your job? Or get sick, have a baby, change careers, get a demotion, or need to support an ageing or ill family member?


Any one of these scenarios can be financially difficult to manage and if more than one crisis eventuates at one time, you could get yourself into serious financial trouble.


This is why a qualified and experienced mortgage broker can be your ultimate weapon. They will already be thinking of these issues – and others.


For instance, a good mortgage broker will know all about your bad debt and they’ll encourage you to minimise any personal debts, before you even think about adding another massive debt – good or bad – to your loan portfolio.


A good broker will also work with you long term to build a successful, profitable property portfolio that pays dividends for years to come. They will be thinking about the ‘bigger picture’ and will be able to advise you on the right steps to take now, considering your long-term goals for the future.


Smart investors always interview their experts before working with them, and truly savvy investors take this one step further by only choosing to work with mortgage professionals who invest in property themselves – as they understand and appreciate the nuances associated with building a property portfolio from an investment perspective.


Working with a qualified mortgage broker is essential to your success as a property investor, as they’ll be able to offer advice and guide your lending decisions.


If you haven’t already applied for a Complimentary Property Finance Review through Real Wealth Money, I encourage you to contact our brokers now to arrange your free finance appraisal.


‘Til next time, happy investing! 

Helen Collier-Kogtevs, Managing Director, Real Wealth Australia

Helen Collier-Kogtevs is the Managing Director of Real Wealth Australia, a leading education and mentoring company for real estate investors.  Not only is she a highly successful property investor and an educator, but also a best-selling author, and a philanthropist.


Helen is particularly passionate about helping people, especially people who are keen to create wealth and make a difference in their lives, and she has been mentoring thousands of new and experienced investors in their pursuit of wealth creation through property.


She founded Real Wealth Australia to mentor investors create wealth and financial freedom by focusing on helping them build an investment strategy to fit their individual goals, rather than focusing on one particular investing method using her successful “10 Properties in 10 Years™” system.

Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.