The Financing Options Open to Property Investors

If you’re wondering about your future in the property market, you are far from alone. Rising rates, the scarcity of mortgages, the fluctuating regulations and unstable political climate are all contributing to an uncertain property market. This turbulence has led many landlords and investors to leave the market all together! What can help you to stick it out through the storm? Can you even come out the other side better off?

The good news is that there are things you can do, and options that are available, to help you financially to withstand the pressures of the current market and still make additional investments to expand your property portfolio. One such option that is available is property financing.

The Potential of Property Financing

When investors hear the word “financing” it often makes them recoil. However, for many savvy buyers and forward thinking investors, financing is becoming a viable option that is helping them to remain successful in their field. There are various options available that come with their own pros and cons, so if you can utilise a property finance comparison site like Propp, that’s likely to help you make the best decision and find the best deal. Besides that, it’s important that you educate yourself to the options that are available, learn about the financing solutions that can be extended to property investors, and discover the options that would work for you. Let’s briefly introduce a few of these options to get you thinking and start your research process.

Auction Finance

A great way to get more for your money these days is to buy property at auction. While typically that involves having the cash on hand, auction financing is also an option to help you get a better deal. This short term mortgage is secured against the property and as a buyer you only need to put down a deposit, often around 25 per cent of the purchase price.

Bridging Finance

If you are in a situation where you need a quick and flexible finance solution, a bridging loan is a great option. This short term loan is only for a short period of time, from just a few weeks to two years.

Commercial Mortgages

If you’re thinking of moving away from the residential property market, commercial property is a whole new world of opportunities. Commercial mortgages can help you to buy business premises, buildings like shopping centres or warehouses. Then you rent out these commercial properties to retailers for a profit.

Development Finance

A lot of investors are making their money go further by snapping up a cheap property and converting it into residential spaces of high quality. Development finance is designed to help you to do just that. It gives investors and developers the money they need to either build a new property or transform an existing one.

Buy-to-Let Mortgages

A lot of property investors make their money by buying property to let. The mortgages for this kind of investment are different standard residential mortgages so you will need to look for this specifically if you are wanting to acquire the funds needed to buy a property to then let out in the future.

Secured Loans

If you need funds to make home improvements, or you’re a landlord that wasn’t to release some equity from your portfolio or get a deposit for a buy to let building, a secured loan can help you get your hands on the cash you need.

The Options Are Endless

Evidently, there are many options for property finance, so do you research and consult with the experts that can help you to make the best decision and get the most out of your money.


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