Investment property loans.

For those buying investment properties.

Looking to start your investment property portfolio or looking to expand it? Let us help.

Prefer to talk to a person IRL?

Just pick up the phone and contact us and we can walk you through the process and get you started!

A bit more detail.

We took the 3 most commonly asked questions when it comes to buying an investment property and answered them below for you.

How much can I borrow?

There are 2 main factors for finance when purchasing your first investment property.

  1. What is your borrowing capacity

  2. Do I have enough funds for the deposits and costs?

Much like when you obtained your borrowing capacity to purchase your previous property, we will assess your current financial position and advise what your borrowing capacity is to purchase your investment property.

Fun fact

The amount of proposed rental income that will be coming from your investment property can help with how much you can borrow, so you may be able to borrow more than you think!

Included with your borrowing capacity assessment will be a funding summary which will detail how much deposit is required for the purchase along with any costs and fees such as:

  • Stamp duty
  • Conveyancing costs
  • Land tax

How do I access equity from my home?

In order to access equity, you will need to do a Home Loan Refinance application. Learn how equity is calculated below.

Property Valuation and how equity calculated

A valuation is the process of determining the value or worth of a property. Once the valuation has taken place by the chosen bank, a valuation report is provided to advise of the property value.

Equity is the difference between the current value of your property and how much you owe. Equity can be accessed for a range of reasons and needs to be approved by the bank.

To calculate equity, you can use the formula below:

Current property value × 80% = $x minus your current home loan balance = $x equity available.

What is interest-only repayments and why pay interest only for investment properties?

Interest-only repayments are a type of loan or mortgage repayment option that allows the investor to make payments solely on the interest portion of their loan without paying off any of the principal amount borrowed.

The benefits of interest-only repayments can include:

  1. More control over cash flow management
  2. Keeping home loan repayments low
  3. Taxation purposes such as interest is tax deductible and negative gearing (please seek taxation advice from your Accountant)

Everybody’s financial situation is different and we will help work out what the best home loan repayments are that work for you whether it is interest only or principal and interest repayments.

Self Managed Super Fund (SMSF).

Self-Managed Super Funds (SMSF) are a great way to diversify your Superannuation Savings into Direct Property.

What is Self Managed Super Fund and how does it work?

Self-Managed Super Funds (SMSF) are a great way to diversify your Superannuation Savings into Direct Property.

By creating a SMSF, you essentially take control of your Superannuation investments and can add tremendous value to your Retirement Plans.

SMSF allows you to buy an investment property by using some of the money accumulated in your Super and borrowing the rest from the lenders.

By following this strategy, you can enhance the end value of your retirement savings and obtain significant tax benefits, which are otherwise not available for the property.

Should I speak to a Financial Planner?

If you are looking for advice on how to strategies your upcoming investments and how to grow your wealth portfolio, you should definitely speak with a Financial Planner.

Not only will they advise you on how to grow, they will also advise you on how to protect what you have worked so hard to build. Whether it be life insurance or income protection, insurance can provide the peace of mind that your hard-earned assets and your lifestyle are going to be protected against any unforeseen events.