Finance For Property Investment

By: Think Financial 2011  06-Dec-2011
Keywords: Investment Property, Home Loan

You have come to the right place !

Not all mortgage advisors are created equal, there are specialty areas, and different knowledge requirements are essential for providing sound residential investment lending advice.

Think Financial has one of New Zealands leading specialist teams of residential investment lending advisors!

The lending advice investors need is different to that of a regular home loan advice. To enhance your

success as an investors you must access the best knowledge

and create the best independent team of professionals you can find.

Think Financial can be the lending specialist you need. We will discuss:

  • different lending products - interest only, revolving credits
  • how different types of property can impact the amount of lending you can get - apartments, multiple dwellings, and so on.
  • different ownership structures - LAQC's and Trusts
  • most effective loan structure for tax minimisation (in conjunction with your accountant)
  • how you can lend for the growth of your property portfolio
  • review of your financial risk

Every investor wants to know what they can borrow, and we can help show you this. We will not only look at your current borrowing capacity, but guide you through the impact of each purchase on your borrowing position.

You will know in advance if the property you are seeking to purchase will be the last property

you will be in a position to purchase (based on your position at the time).

It is crucial that all clients know that can much you can borrow, is also very dependent on what you can actually afford.

The 2 main areas that will impact your ability to purchase and continue to purchase rental properties. Most clients will be required to stop investing due to either limited cash flow or income, or limited equity or funds for deposit.

cash flow

Cash flow is what rental income is the investment property receiving and what cash

expenses are required to be paid. The main cash expenses are:

  • loan interest
  • rates
  • insurance
  • property manager
  • repairs & maintenance

Each investor hopes the rent will cover all the above expenses, meaning the investment is cash flow neutral or positive. However, it only takes a change and the cash flow position will also change. For instance if you loan interest rate goes up your investment may have a cash loss, which means you will be required to fund the loss from your resources.

We want to discuss this with clients, to ensure they are aware of the possibilities and are prepared for them before they increase their debt.


In order to purchase an investment property you will need a deposit, this will either be cash (savings) or equity in other property. If you can't provide the deposit no matter how much income you earn or how great the cash flow is on the property you may not be able to purchase.

We can discuss these elements with you to give you an idea of what your purchasing position is based on equity.

Being a Wealthwise Advisor means we have access to a specialist software & reporting package created by Viridian Solutions. This is a unique software package designed for financial advisors to help improve their clients financial positions.

The uniqueness is; you will have a personalized financial report covering your current position, your improved position, the recommendations to achieve the improvements and an action plan. There are 3 areas of financial advice covered within the improvements:

  1. Bank Account structures
  2. Debt Management and reduction
  3. Financial risk cover

At Think Financial this means your report includes advice from 2 different specialty advisors.

  • you will have financial clarity,
  • you will know the position of your investment properties,
  • you will know what funds you have available for cash flow and further investing (if any), you will know what financial risks you have,
  • you will have a bank account structure that will help automate the whole process.

For further information see

Investors need a team of experts, other than a Think Financial Advisor, this team can include:

  1. An accountant who specialises in property investment
  2. A lawyer
  3. Property coach/mentor
  4. Investment advisor
  5. Property manager

We are very happy to work as part of your chosen team. As an example, if we are providing a loan structure that we believe will need consultation from an accountant we will inform you and speak direct with your accountant to ensure the complete loan structure is correct.

Investors need knowledge to ensure informed decisions are made, but you may also be very busy!!

We have 2 ways to help our investors stay informed:

  1. marketline updates
  2. thinklink

marketline updates


  • interest rate updates
  • loan product changes
  • events calendar for our seminars & workshops
  • update market information
  • client case study of the month

We are constantly developing workshops and seminars to meet the demands of our clients. Most of the ideas for the workshops are from our clients, so if you need further information about any topics please let us know.

Our workshops for investors are:

  • Property Buyers Workshop
  • Investment Property Basics
  • Finance for Investors
  • Your Choice

For further information see

Keywords: Home Loan, Investment Property

Other products and services from Think Financial 2011


Self Employed Purchasers

Over the last few years there have been some great advances by the lenders at the required information from self employed applicants to get finance approved. In simplistic terms these accounts will state the business income, the business expenses and the funds left over would be deemed your income. The Lenders Mortgage Insurance fee, is a premium that is charged to you (the fee can be added to your loan) and is a one of fee.


Are You A First Home Buyer

The lenders criteria is different from lender to lender, which is why one lender could decline you, but another would approve you, or why the amount you could borrow is more at one lender than another. The report will show the lender which lenders have also previously checked on you, and whether you have been put into 'default' of payment or 'collection' with any previous lender or account holder.


We're About Mortgages And More

The variable rate tends to be higher than a fixed rate, so in most cases clients will choose this rate if they expect to repay a portion of the loan, or if they expect rates to reduce in the near future. Your mortgage advisor will help you choose a fixed rate term based on; economist reviews, comparison to other loans held by you, what the future may hold for you, and the flexibility you need.


refinancing - mortgages - Think Financial 2011 Limited

If you are wanting to increase your loan and remain at your current lender this is a loan 'top up', its only when you change lenders that it is a refinance. If your loan also needs to be approved by Lenders Mortgage Insurance, there may be an additional 24 hour delay. You would like to increase your borrowings BUT your current lender does not wish to approve your application.