Your local South Sydney investment loan experts
When you are looking to invest, choosing the right loan to fund your investment is essential to maximise the return you receive. As your local South Sydney investment loan expert, we can help you compare hundreds of options, to find the best loan option for your needs.
Grow your wealth through investment
Just as it is important to research the market for the ideal investment property, it makes sense to shop around for a loan that offers competitive rates and fees while still providing the flexibility you need to make the most of your investment.
This is where the expert advice of your local South Sydney Mortgage Choice broker can be extremely valuable. We compare hundreds of loans from a wide choice of lenders and advise you on the finer details of each option, which could save you money in the long term.
"David helped me through quite a difficult and obtuse investment purchase by being on top of the situation at all times. He kept in contact with all stakeholders involved from real estate agents to conveyancers when my time was lacking. Hard working indeed."
Options for investment loans
Like an owner occupier, you can choose to use a basic or more feature-filled standard variable rate loan to fund an investment property. However there are certain loan options that can offer particular benefits to landlords.
Fixed rate loans
Many investors choose to fix their mortgage interest rate. With a fixed rate loan, the annual interest charge for each year is known upfront. This means landlords can prepay up to 12 months of interest each year - a cost that may be claimed as a tax deduction.
This can be a way of evening out your tax bill in years when income from other sources (such as wage and salary payments) is higher than normal. The success of this strategy hinges on having sufficient cash to prepay interest, and it’s always sensible to speak with your tax advisor to ensure you can claim the full interest charge as an expense in the current tax year.
Interest only loans
Unlike most other loan types, interest only loans involve payments that solely include loan interest - there is no repayment of the principal. The principal is repaid when the property is sold. As some investors aim to make a profit on the sale of the property rather than eventually owning it outright, an interest only loan can be appealing for landlords.
This type of loan offers two key advantages - first, the monthly repayments are usually less than for a principal and interest loan. Secondly, all your repayments are tax deductible as they don’t involve capital repayments of the loan. Most loans permit interest only payments for a limited period, generally up to five years. After this you will need to renegotiate the loan payments with your lender.
Line of credit
A line of credit loan allows borrowers to withdraw cash from their loan up to a certain limit as and when they choose. Each month the loan balance is reduced by the amount of cash coming in and increased by the amount paid for drawings, direct debits or cash withdrawals. There are usually no set repayments, so this loan is best suited to experienced investors with the discipline to manage the loan carefully.
For tailored advice to suit you, speak to one of our expert investment loan team, who can suggest the type of loan best suited to your individual situation, goals and budget.
Getting started in investment
Before you start hunting for an investment property, it's worth considering several important factors:
Your current financial position
Are you well placed to afford an investment property, particularly during the inevitable periods of vacancy?
Can you afford a quality property?
Can you afford a property that will attract decent tenants and deliver healthy long term price increases?
Where are you heading?
Are you prepared, and can afford, to hold onto your investment for the long term? Will you need access to your capital (money invested) in the near future?
How much money will you need?
As with your home, purchasing an investment property can involve significant upfront costs and ongoing maintenance expenses.
How much can you afford to borrow?
Getting an idea of your borrowing capacity is the first step in finding out the type of property and location you can afford.
Do you need a cash deposit?
If you own your home, did you know you may be able to use home equity instead of a cash deposit?
Property investor guide
Our free, downloadable guide explains the costs and steps associated with the purchase of an investment property, positive/negative gearing as well as pros and cons of houses vs. units.
Get started with investing
Many Australians hold investments but have you ever stopped to wonder if your portfolio is really working in your favour? Professional advice takes the guesswork out of investing.
This quick video gives you some insights into getting started with investing.
We're here to help!
So whether you're a seasoned investor or looking to buy your first investment property, our investment loan experts can try and help find you the best deal. We'll be here for you at every stage of the process.