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Investment Property Loan FAQs

Smart property investment could offer a steady ongoing income and/or the potential for increased wealth. Traditionally, property investment is considered a great long-lasting investment method.

Is Property Investment Easier if I Already Own Property?

If you have equity in any kind of existing property, for example your household residence or one more investment property, you could have the ability to utilize this to boost just how much you could get a loan and a lot more quickly develop a substantial property portfolio. Ultimately it will certainly depend on your personal economic circumstance and investment targets.

What Expenses Are Associated With Getting an Investment Property?

When buying investment property, there are other expenses along with the purchase rate of the property that you will need to think about. These may include:

  • Building and pest assessments
  • Survey report
  • Strata inspection report
  • Loan application fee
  • Disbursements
  • Lenders Mortgage Insurance
  • Refinancing or switching costs

If you're thinking of investing in property, contact us for a confidential chat about your options.

How flexible does an Investment Property Loan need to be?

Versatility in your investment property loan can mean several things, the ability to make additional repayments, to redraw on your loan, split your loan in between a fixed and variable interest rate or also move the loan in between homes. Some of these may be included others may come with a fee.  You need to be clear concerning your investment technique prior to picking an ideal investment property loan. As switching loans can be costly, it's important to talk to us, your Accountant or Financial Planner before making any decisions about your investment property loan.

Why you need a broker like us?

A great broker will certainly assist you to discover the investment property loan that is most suitable for you to meet your investment targets, whilst working carefully with your accountant and/or financial planner. With access to investment property loans from a big range of lending institutions, your broker will be able to save you money and time.

How Can I Pay My Investment Property Loan Off Faster?

If your investment plan requires you to pay out your investment property loan swiftly, there are a number of techniques you can take, including:

  • Splitting your minimum month-to-month payment in to 2 and paying this quantity fortnightly
  • Dividing by four and paying weekly; this efficiently boosts the amount your repay every month
  • Making both regular and ad-hoc added payments
  • Maintaining a greater repayment amount if rates of interest fall

Are there Interest-Only Repayment Options on Investment Property Loans?

Yes, Interest-only loans match investors that are focused on accomplishing capital development in the brief to moderate term, and usually go hand-in-hand with negative gearing. Interest-only loans will certainly have reduced payments compared to a principal and interest loan and might be offered as a fixed price or a variable price loan item. Interest-only loans could function to minimize your complete outgoings and improve your cash flow.

Paying Interest ahead of time

Paying interest in advance on your investment property loan works by paying the interest you will accrue over the next 12 months in one lump sum before it is in fact billed. This permits you to declare the costs versus your tax obligation a year earlier than you would normally be able to. Usually available on fixed rate investment loans, you may also benefit from a rebate if you pay the interest beforehand.

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You may also be interested in:

How To Get A Property Investment Loan

Types Of Investment Loans

DISCLAIMER:  The information contained on this website is provided for general education purposes only and does not constitute specialist advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.