How To Choose the Right Loan for Residential Property Investment
Learning how to maximise cash flow for a lucrative residential property investment opportunity can be achieved simply by speaking to a mortgage broker.
A mortgage broker can explain the advantages of different home loans, especially how they pertain to you as an investor rather than an owner-occupier.
Three such options are line of credit loans, interest only loans and interest in advance loans.
A line of credit loan allows borrowers to draw funds continually up to the limit, making it possible to invest in more than one opportunity at a time.
Interest only loans may best suit investors looking to achieve capital growth in the short-medium term and often go hand-in-hand with negative gearing. These types of loans will usually have lower repayments than a principal and interest loan.
Paying interest in advance loans give the option to pay the interest that will accumulate on your loan over the next year before it is actually charged. This allows you to claim the costs against your tax a year earlier than you would normally be able to.
A mortgage broker can best explain the details and advantages to each of these types of loans and can help you determine which one is the best for you.