Have you thought about purchasing an investment property? You are earning a good income, you have money in the bank or enough equity (equity is the value of your property less monies owing) and you feel the time is right to purchase an investment property. However you need to borrow monies to do so.
- Therefore how do you go about this process?
- Which lender has the investment home loan that is most suitable for you?
- How much money do you need to cover your deposit and costs?
- How much are your costs?
- Should you have a fixed rate or a variable rate or a mix of both?
- What are the repayments and can you afford to meet the repayments?
- How do you know whether your interest rate is competitive?
- Are there any ongoing fees and charges with your investment home loan?
- How long is it going to take for your lender to approve your investment home loan?
- Is the lender that you are talking to experienced?
- Do you understand the concept of gearing?
- Should you be positively geared or negatively geared, and what is the difference?
The structure of these loans is absolutely critical. You should talk to an experienced and knowledgeable broker to understand all of the concepts:
- Will you receive a tax deduction?
- Should your repayments be on an interest only basis, all principal and interest?
- Have you spoken to your accountant?
- In purchasing an investment property is a better for you to be a brand-new home on existing property? What are the stamp duty implications on this?
- Will your owner occupied home loan and investment loans be set up in such a way that you maximise your tax deductions?
These and many other issues need to be addressed so that you can maximise your return that the allows in the purchase of investment real estate.
At Frontrunner Finance Solutions, and with over 65 years of experience we are able to assist, to maximise the benefits that are available to you.