A good investment loan can make property investment a much smoother process. Investment loans vary depending on what you are looking to achieve, and can be either very simple (like your standard home loan), or something more complex that helps you to make effective use of tax, gearing and repayments.
Whilst most lenders offer similar loan types (refer below), your main benefit will come from how the loans are structured.
Each investors situation is different and this needs to be taken into account to assist in maximising wealth accumulation, tax benefits and control of your assets. Additionally, many lenders now assess and price loans to investors differently than they have in the past meaning an investor not only needs to understand the property market but also an increased understanding of the finance market.
Some of the loan types and payment options for your investment loan include:
- Variable rate loans
- Line of credit loans
- Fixed rate loans
- Paying your interest in advance
- Making interest only repayments
Talk to me today to find out how you can make good use of loan features such as redraw, offset and additional repayments to help manage your investment loan.