Purchasing your own investment property is an exciting time. Building your property portfolio for the future. It is a great way to build wealth, but also proves to be a big financial commitment.
There are a number of ways we can assist with establishing your investment home loan. You have options for fixed, variable or split interest rates with flexible features like redraw available if required. Most investors tend to opt for Interest Only loans or a Line of Credit.
Interest Only Loans
An interest only loan is where the principal debt stays the same. You only have to pay the original loan amount you borrowed when you sell the investment property in the future. With market improvement and renovation, hopefully you then make some capital gains from the original amount borrowed. This option is beneficial to investors because it reduces your monthly repayments compared to paying the principal debt. You can also get tax deductions on the interest payments as well as making it easier to calculate the true returns from the property.
Line of Credit
A Line of Credit is a great facility if you already own a property as you can tap into the equity you have built up in your existing property and use it as a deposit for your pending investment purchase. You use your existing property as security as well as the property you are purchasing (cross securitised). It allows you to draw from a fixed amount at any time to pay for your investment property or any other needs that arise.
Each individuals circumstances are completely unique. Discuss your goals with one of our qualified consultants and they can give you a comprehensive break down of what finance options would best suit your investment purchase needs now, and into the future, especially if you are intending to continue growing your property portfolio.
Apply Today
Applying for finance with the Alliance Group is easy. Give us a call or apply online.
