Investment Property Loans
Whether you’re looking to buy your first investment property or expanding your existing portfolio, it is vital to get the right loan structure and correct information to maximise your investment performance.
What type of services do we offer?
- Looking for an investment property loan
- Purchase property using a Superannuation fund
- Utilise our Property Division experts to identify the right property for your financial position
We have been facilitating investment property lending for over 10 years and our Consultants are property investors themselves who have over 50 years of combined experience.
Information and experience is king, when it comes to making the right decision on how to investment your money to achieve the maximum yield (return) on investment.
We provide:
- Free Property Reports!
- Property suggestions on up and coming investment locations
- Finance assessment to determine what type of property will work best for your financial position.
What Type Of Gearing Should I Consider?
Negative gearing - the interest you are paying on the loan is more than the income. As a result you are making a loss.
Neutral gearing means that the interest you are paying on the loan is equal to the income.
Positive gearing means that the interest you are paying on the loan is less than the income. As a result you are making a profit.
What is right for you will depend on your type of income, what investment you may already have, what liabilities you have and your cash flow.
Most investors are looking to pay as little out of their pocket as possible and even have income coming back into their pocket to pay the home or investment loan off quickly. Positive geared properties are not easy to locate in the general market, although our property arm has access to these type of properties and would love to discuss them with you. Enquire about positive geared property NOW!
Benefits of property investment
- Investment property can provide ongoing rental income plus long term capital growth and if you hold the property for a number of years, generally you make a profit when you sell it
- Property investment can also be a very tax friendly investment. You may achieve personal tax savings through negative gearing, and if you hold onto your property for over 12 months before you sell, the capital gains tax payable will be calculated on 50% of the profit rather than the total profit.
- Unlike some other investments such as shares, you have more control over your investment property. You may add value to it through things such as renovations, which could mean you can charge a higher rent and your property may be worth more if you decide to sell.
Downsides of property investment
- Depending on the type of property you choose to invest in, it can be a high maintenance investment. An older property can require ongoing maintenance, which is a reason some investors choose to purchase new or near new property. New property also has higher benefits for depreciation and can attract a better, long term tenant.
- It is also a very ‘illiquid’ asset, meaning unlike cash deposits or shares, it can’t easily be converted to cash. In the event where you need access to funds in an emergency, you’ll have to sell the entire property – you can’t simply sell off one bedroom. And selling a property can take weeks or even months depending on market conditions. Where possible, we suggest finance structures and loan and landlord protection insurance that will provide a buffer of investment funds to cater for any unseen circumstances and protect the property against any loss of income due to damage through the rental market or storm damage.