Ready to invest in property?
Securing the best investment property loan is almost as important as finding the right property to invest in.
Owning an investment property can be the cornerstone to building long-term wealth. Not only does real estate increase in value, but you can also build equity in your property at the same time. You can even receive a number of key tax breaks along the way, which can lead to significant wealth creation opportunities.
Choose the best loan for your investment
Whether you are a first time investor or a seasoned campaigner, you can use the equity in your existing home as a deposit with a Line of Credit Loan, pay ‘interest only’ to improve your tax position with a Variable Investment Loan, or get started quickly with a Low Doc Investment Loan.
- Line of Credit Loansenable you to access the equity in your existing home and use it as a deposit for your new investment property.
- Variable Loanswith an interest-only payment option keep your monthly repayments down, enable tax deductions on the interest rate, and make it easier to calculate property returns.
- Interest-only Loanscan mean that your monthly repayments are less than they would be if you were paying off the principal amount.
Use your equity with a Line of Credit Loan
Use the equity in your home to increase your buying power with a Line of Credit Loan, without having to save for a deposit. This works like a credit card, but with a lower interest rate. Because you can access the equity in your home, it’s more secure. You can even deposit your income directly into your loan, which operates like an overdraft – once it is paid back, you can re-use it again and again. There’s also an ‘interest only’ option, which allows for greater tax savings.
What are the tax savings with a variable investment loan?
The interest you pay on your investment loan may be tax-deductible and, depending on your situation, you may be able to claim a range of other deductions. For example, when the rental income is less than the outgoings, the property is classified as negatively geared. Under the right circumstances, the Tax Office will allow the ‘loss’ on the investment to be declared as a tax deduction. Negative gearing can be complex, and as with any investment, you certainly need to do your homework. Be sure to seek professional advice from an accountant or financial planner.
Your investment property loan can be tailored to your needs with competitive interest rates and favourable lending criteria.
Interest-only loans allow you to defer the repayment of your loan principal for a set period (for up to 10 years). The benefit of interest-only loans for investors is the reduced payments allow for lower loan repayments so the rental income will cover off the monthly mortgage payment.