Property Investment Loans in Australia
Owning an investment property is a popular route to wealth generation in Australia. While some opt to buy an investment property so that they can accumulate enough funds to buy their own home, others choose an investment property as part of their retirement plans. Some savvy investors even opt to move into non-residential property investments through property trusts and syndicates. One of the ways of maximising the returns on your property investment is obtaining an investment loan product that offers a competitive interest rate and the right set of loan features that will cut down your borrowing costs.
Free Investment Finance Assessment (analysis of your investment loan options)
An experienced investment finance mortgage broker can help you assess your investment loan options, negotiate a competitive finance structure, lodge your loan application and even monitor the performance of your investment loan long after settlement. Simply call us on 13 LOAN (or +61 2 9249 3739 for international callers) or email us the form on this page and we will return your contact within 2 business hours.
Good Debt vs. Bad Debt
As investment properties are generally considered to be tax effective and assist in generating wealth, they are often considered to be ‘Good Debt’. In simple terms, good debt is considered to be tax-deductable and can be used to generate an income by investing in property or shares. Bad debt on the other hand, is not tax effective and does not generate income, things such as credit cards and personal loans fall into this category.
What is Negative Gearing?
When your borrowing costs exceed the income from your investment property this is referred to as Negative Gearing. Negative Gearing can offer tax benefits by allowing you to deduct your borrowing costs from your total income, provided that the investments are genuine. However, the tax benefit only comes into effect if you earn other taxable income as well.
Negative Gearing can be complex and as with any investment, there is the risk that you may make a loss. An interest rate rise will obviously mean you pay more, and if you are unable to afford the repayments, you could be forced to sell your investment property in a hurry and make a loss in the process. Find out how much your repayments will be if interest rates rise by talking to an experienced mortgage broker.
More information and home loan help
For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 LOAN (direct +61 2 9249 3739)
