Investment Property Loans
Investment in property is one of the secure way of building your wealth. You may get tax deduction on your income as well when you invest in property.
Many people think it needs a large deposit to buy an investment property. It is not True.
Majority of Property investors in Australia have a combined income of $60-$80,000/year.
If you already own a home, you could be eligible to buy an investment property with out any additional deposit.
Talk to us or submit your loan enquiry online to find out if you are eligible?
Here are few Investment property loan tips below.
Dont worry!, If you dont understand them or not fond of reading it.
Just call 0406020211 to fix an appointment to discuss them in simple terms.
Investment Loan Tips
The types of loans available for investment properties are generally the same as the ones available for owner occupied properties - you can avail yourself of the same interest rates, options and flexibility. The key to determining which loan is best for your investment property comes down to your investment strategy.
As with any large financial decision you make, it's always wise to seek investment advice from a professional before entering into any property investment.
The two primary ways in which investors build wealth through real estate:
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Capital Gain
This is the increase in value of the property to be more than the initial price of the property plus your repayments and buying and selling one-off costs. For example, if you purchased for $200,000, you sold it for $300,000 and your
repayments and additional costs were $60,000 the gross capital gain is $40,000.
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Building Equity
This relies on an increase in value of the property and bringing down the loan. For example, if you purchased a property for $200,000, and your loan was for $150,000 you would have $50,000 equity in the property. A few years later if the property
was valued at $225,000 and you had $100,000 remaining on the loan you have $125,000 equity in the property. Plus you benefit from the rental return on the investment property.
Tips to help you choose an investment loan:
1. Your Investment Strategy
First, set your financial goals and investment strategy - are you looking at a long term or short term gain?
Do you want to take a passive or aggressive approach? For example, are you looking to own a few properties
where you can live comfortably off their rental income or, are you looking to build a portfolio of properties
which you can sell, cash up and move to the south of France? Will you structure your repayments to pay off
the loan as quickly as possible or structure them in order to obtain a tax benefit?
There's plenty of information available about investing in property - devise a plan with your financial advisor or
accountant, or to determine a strategy yourself.
2. Your Loan Options
Some of the more popular loan choices for investments are:
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Interest Only Loan
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Introductory Rate or 'Honeymoon' Loan
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Line of Credit/Equity Line
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Redraw Facility
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All In One Accounts
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100% Offset Account
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Split Loans
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Construction Loans
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Bridging Loans
3. Call AVM Finance, and talk to Your Credit Adviser
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Now you've got your strategy !
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Discuss with our Credit Adviser to get the loan choices available to you that suite your personal circumstance and strategy after submitting required documents.
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Sign the Loan application & broker documents
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Get a Loan approval decison from the lenders through the credit Adviser.
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At AVM finance, You are looked after in the best poosible manner. Our Credit Advisers are fully accredited and MFAA approved credit advisers who have high quality of service and professionalism.
