Investment Loans
Investment & Property Development
Property Investment is a great way to generate income, build equity and access tax breaks. But to achieve this, there are a number of things you need to consider and we're here to help educate you on everything you need to know.
Key Features of an Investment Loan
Interest Only Payments - Paying off only the interest portion of your loan is a common strategy but needs the proper advice and guidance. Our mortgage brokers are experts in telling if this is the right strategy for you.
Offset Accounts - An offset account lets you store extra cash that you've saved against the principle of the property.
Loan Splits - Splitting your loan between a fixed and a variable portion can help manage your risk to interest rates moving up and down, affecting your investments cash flow and strategy.
Lines of Credit - Access to a quick line of credit can be very useful for investors needing to inject some quick money into their investment.
Why Use Lendcap to compare investment loans?
In today's market, with prices continuing to soar, many buyers are buying to invest rather than to occupy. More than 2 million Australians have investment properties, it's quickly become one of the most popular investment strategies in Australia. You can build equity in a property both by the rise in the price of house and the collection of rent. There are also several tax benefits to investing in property including negative gearing and depreciation.
Negative gearing and depreciation can be complicated and it's important to make sure your investment loan has a structure that matches your tax goals. With the guidance of a Lendcap mortgage broker, you can confidently select the loan option that will allow you to maximise your investment returns and keep your tax return tidy.
Investment Strategy
Do you want to pay off your loan faster or do you want to keep your savings in an offset account? Depending on your strategy, different loans will better suit your strategy.
Tax Breaks
Using your property as an investment can get you tax breaks on costs such as Lenders Mortgage Insurance.
Calculating Rental Yields
Calculating rental yields is vital to understanding the potential risks and returns of your property investment.
Loan Features
If you're sitting around with lots of cash, an offset account is a great idea. The ability to pay off only the interest portion of your loan will help those investors with certain cash-flow strategies.
Choice of Lenders
Not all lenders are equal and some view property investment as more of a risk than others. Some lenders also view certain borrowers more favourably, so if you don't shop around you could end up with a loan with the wrong lender.
Great deals
Take advantage of special offers and incentives offered by some banks or financial institutions.