As your portfolio grows, so do your options. You may be able to make new investments that weren’t feasible for you before, opening up new avenues of income for you as your portfolio grows. Reviewing your financial situation every few years lets you know exactly where you’re at, how far you’ve come, and where you could go next.
Sometimes it’s better to cut your losses, even if they were making you money before. Times change, and sometimes that means that properties that were profitable, are no longer doing well. Regularly reviewing your loan allows you to stay on top of this, so that you can make changes accordingly, and get your finances back on track.
Adjusting interest rates could save you thousands. As your income changes and your loan amount drops, you end up paying more in interest than you need to. Reviewing your loan and adjusting your rates accordingly could see you save tens of thousands in interest that would have otherwise been funnelled into an out-dated, inefficient loan.
Review your next steps. Good investment strategies are designed to work out in the long-term, but sometimes new developments in the market or in your financial situation mean that changing tack can be a better option than sticking with a tried-and-true plan. Reviewing your loan may open your eyes to a completely different direction that could work out better for you than your original investment plan.
Recently renovated? Revalue and extract equity. Most investors and homeowners renovate and improve their properties to add value to them and raise rental prices, however these kind of improvements can also work wonders for reducing your home loan, too. If you have renovated your property, have it revalued in order to extract equity that could help you reinvest, or secure collateral.