Investing in residential property can be your first step towards wealth creation.
For some people, this is a way to enter the property market. The income generated by rent can help pay off the loan however, you cannot live in this property. Investors who already own a home have the option to use the equity to support an investment loan.
The equity you have accumulated in your home can allow you to borrow the full amount required to purchase an investment property.
- All interest you pay is fully tax deductible and rent earned from the investment property can reduce your tax liability
- Some people choose to buy an investment property before a home as a way of getting into the property market
- The structure of investment loan is critically important, you must consult with your accountant or financial advisor before taking out a loan like this