Investment Property Loans

These are loans that are used to secure an investment property. Because the property will not be the principal place of residence for the borrower, interests’ rates are slightly expensive than owner occupied loans. APRA recently introduced new lending restrictions for the big 4 banks which has seen a few changes and even an increase in the cost of borrowing for investment purposes by the major lenders. Its important to shop around and not be loyal to an expensive lender.

Benefits

Rental income. An investment property can increase your cash flow by providing you with a second income source through rental income

Flexibility. An investment property is one of few investments that is physically tangible. If your situation changes and you no longer wish to use your property as an income-producing asset, you can always move into it. However, be mindful that there may be capital gains tax implications if you choose to do this.

Tax and depreciation benefits. You can take advantage of certain elements of property investment, including negative gearing and also depreciation and tax deductions on aspects of your property.