Property Investment Loans
According to the ABS in 2007, Australians borrowed around $82 billion in investment loans and $263 billion dollars in home loans. There are now many excellent borrowing options available to investors and you will find a good outline of them and how they work here. Always seek advice from your accountant on investment and taxation rules for your particular situation. While you may read or hear different information, talking to your accountant and or financial planner will give you the appropriate analysis of your specific financial, investment and taxation situation. This is particularly important when you are considering investment relating to your superannuation.
There are a range of investment loans and loan features available - ranging from simple Home Loans to more complex loans that are allow you to manage tax, gearing and repayments. Go to the Residential Investment Loans page for more information on Lines of Credit and the various interest rate options available.
Investment loan decisions are often influenced by whether the borrower has any owner-occupied debt. Owner-occupied debt is usually paid off first to maximise the effectiveness of gearing, while the tax effective debt (investment debt) usually has the minimum repayments possible, often interest only repayments. If there isn't any owner-occupied debt, then personal circumstance and choice dictates interest only, principal and interest or a combination of the two. Talking to your accountant or financial planner is particularly important when you are planning on making decisions about funding for investment purposes versus owner occupier or personal use.
Property Investment - Golden Rules
Rental returns aren't the only opportunity to maximise property investments. There are a few golden rules to getting the most out of the borrowing side of your property investments.
- Make sure you review your property investment loans regularly to ensure you are on the best deal available. Over the course of a long-term property investment plan, the type of loans available and your situation may change dramatically.
- Be disciplined about the kinds of add-ons you pay for with your investment loan. Only get features and benefits you will really use. They all cost you money.
- Do the math and change loans if there is a long term benefit. Even though the costs can add up to anywhere from hundreds to thousands of dollars, changing to a more sensible structure or lower interest rate now may actually save you quite a bit more over a long investment period. With the help of a good mortgage broker, you won’t even need to do most of the work.
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| home loans for your situation | how much can I borrow? | savings and loan calculators |
| residential investment loans | using a mortgage broker | talk to a broker |
The extra money you save or earn because of the change can help you to expand your property portfolio, undertake redevelopment projects, take advantage of the tax benefits of paying your interest in advance, finance renovations on your home, or even top up your superannuation.
For more information on property investment loans
For more information on investment finance or the loan that is in your best interest, talk to your local mortgage broker and we will return your enquiry within 2 business hours. Or call us at any time on 13 LOAN or direct on +61 2 9249 3739.
