Investment Loan Sydney
Whether you’re a first time investor, or you already hold an extensive property portfolio, you’ll know that investing in property can be an excellent way to build wealth. However with tax, cash-flow, and capital gain implications to consider, choosing the right mortgage loan to fund your property investment is crucial.
How To Finance Investment Property
Did you know that some investment loans in Sydney and Australia allow you to pre-pay your yearly interest so that you may enjoy a tax benefit sooner? There’s lots to consider before financing your property investment. Express Mortgage Market can help you develop investment loan funding strategies with specialist loan structuring advice. Important aspects to investment loan finance include:
- Interest only vs principal and interest
- Cross-collateralisation of security properties
- Refinancing to release equity
- Pre-payment of annual interest
- Depreciation of investments
- Rental yield
- Capital growth
How to Buy Investment Property
Here are some handy hints to get you started in property investing:
- Obtain independent financial advice
Before investing in property, you should consider seeking independent financial advice from your accountant and/or financial planner. This will help you minimise your risk and maximise any possible benefit. (Express Mortgage Market cannot advise you on investment strategies)
- Set clear investment goals and objectives
Why are you investing? Are you seeking tax relief, or strong rental returns? Perhaps long-term capital growth is your priority? A clear objective will help you make a better property investment.
- Research the property market
The more information you have, the more likely you are to invest wisely. Make sure you feel comfortable investing in the geographic area and property type you’re considering.
- Negative Gearing
Many property investors benefit from tax savings through negative gearing – where the ‘return’ from rental income is less than the borrowing cost of the investment. The loss may then be used as a tax deduction. Consult your financial adviser to see if negative gearing can work for you.
- Avoid property scams
There have been some well-publicised cases where inexperienced, first-time investors – particularly those from interstate – have been overcharged by unscrupulous property developers. If an investment opportunity sounds too good to be true, it usually is.
