LOANS

BUYING AN INVESTMENT PROPERTY

These days property investment is popular for many reasons:

The Benefits

1) Property can be a fairly secure, long-term investment;

2) Property is the only asset that others can help pay off

3) Some people continue to live with parents or in a shared rental house while owning an investment property so they can pay it off faster

4) There can be tax benefits through negative gearing although negative gearing isn't suitable for everyone. While it can lower your tax liability, the tax implications will depend on your personal situation and the type of investment you choose. You should always seek independent financial advice before investing and gearing.

The Risks
Like every investment, property also involves expense and risk.

For example:

1) High purchase costs, including legal costs, Stamp Duty, property inspection fees, loan establishment fees;

2) Ongoing costs including letting & management fees, maintenance, rates, body corporate fees and insurance which may have to be funded by income other than rents;

3) Vacancies & loss of rental can result in serious cash flow crises;

4) The value of the property may go down in a declining market or recession leaving you with little if any equity;

5) Freeing your equity in the property – either by selling it or refinancing – can take some time which may mean missing out on other investment opportunities

Loans Insurance can help you source the  most suitable investment property loan for your needs and arrange pre-purchase approval of your loan so you know how much you can spend when you find just the right one. 

Apply online now and a Loans Consultant will work harder to find your loan.