For borrowers who wish to purchase an investment property, the choice of home loan can be crucial as there can be many tax benefits involved.** Property is usually considered as a long term investment. Growth can be created either from a rental income, increasing property prices, or tax benefits.
Types of loans that suit investment properties include:
1. Equity home loans or line of credit , which enable you to borrow against any equity in your current property
2. Interest only home loans, whereby your repayments cover the interest component
3. Standard variable or fixed rate home loans, many of which allow you to borrow up to 95% of the property value.
· Long term investment which is fairly secure
· It can provide you with a valuable asset that can be used to secure other assets
· A good rental income often means the property "pays for itself"
· Tax beneftis through posstive and neggative gearing
· Potential for high rental yield, depending on property. come talk to us about rental yeild.
· Purchase costs can be significant when you include loan establishment fees and legal costs.
· There can be on-going costs such as maintenance and insurance
· The value of the property may not increase at the anticipated rate
· Rental income cannot always be guaranteed
We can provide a range of property reports, which outlines the potential rent, expected growth, past sales records for that particular property and Rental yield.
**Always seek advice from your accountant on investment and taxation rules for your particular situation prior to making a decision on investment methods.