Investment Home Loans, Sydney , Pros and Cons

Selecting the right Investment Home Loan can make all the difference to how profitable your property investing turns out to be. There ar loans available ranging from 106% No Deposit Investment Loans down to 60% LVR investment loans. In the home loan market today we have the benefit of a large variety of Investment Home Loans.......some very flexible, while others offer very little flexibility. If you choose a loan that is unsuitable to your needs, it may very well prove to be quite costly, and have an impact on your investment success and wealth generation.

Having so many options available can seem such a benefit , but in reality can make selecting the right Investment Home Loan all that much more difficult, especially for those that are new to property investing. However, this is where a professional home loan consultant can be a lot of help by guiding you through the maze of options available. Making use of a mortgage broker’s investment home loan knowledge will help you to make the right choice in selecting the Investment Home Loan most suitable to your needs.

There are so many options to consider when selecting the right loan. For example, a number of investment home loans offer a mortgage offset account .Any surplus money you place into this account can result in a saving in interest payable by you to the lender. The way this works is that when you put any of your surplus money into that account it effectively reduces the principal when calculating interest charged on the loan. This helps you to reduce the interest paid, and therefore allows you to pay off the loan that much quicker. It is important to speak to your accountant to get tax advice on the use of an offset account for investment purposes.

Or, another option to consider is loan portability, which is where you can transfer a loan from one property held as security to another property. This would allow you to substitute one property held as security for another, without having to pay out the loan and get another loan. In other words, where you can transfer a current investment home loan to a new home loan, without having to pay out the current home loan and then get a new home loan. Portability can be particularly good for investors who intend sell soon and trade up, and can mean a savings in fees and charges.

Also, for some property investors it may be suitable to have a facility which allows interest to be paid in advance, in other words to prepay the interest on an investment home loan in order to bring forward a tax deduction to an earlier financial year so as to minimise tax in that year. Obviously, as always, the decision to prepay the interest would need to be taken only after you have consulted with your accountant or financial advisor.

There are many other options that could be considered and that is where a professional such as a mortgage broker can be an invaluable asset in assisting you with your investment home loan needs. Why not let us help you ...........

Investment home loans are secured by residential property. The security may be your own home or it may be the investment property you want to buy, or it could be secured by both properties.

Some people save up the deposit for an investment property, while others use the equity built up in an existing property. The type of loan that could be used to utilise the build up of equity is the Equity Home Loan. Besides the equity home loan there are a variety of investment home loans available, such as Interest Only Home Loans and Variable Interest Home Loans.

It would be important to be aware of the advantages and disadvantages associated with each of the loans in order to maximise the returns you get out of your property investment. This is where a Mobile Mortgage Broker can be of great benefit to you. You’ll not have to do any running around. Call us to arrange for us to see you in the comfort of your own home and we’ll do all the legwork for you. Our Mobile Mortgage Brokers are both friendly and helpful.

Being informed would put you into a better position to allow you to make the right choice as to which loan will better suit your needs. And, just as important, which loan will work out to be the most cost effective for your property investment.

Why not let one of our mortgage consultants help you by discussing the options available to you and by running through the advantages and disadvantages of the various home loan products available. This could be of great benefit in assisting you to maximise the benefits for the loan you choose.

Should you need any further information on this type of home loan or any other type of home loan, please make an appointment for a specialist mortgage consultant to call you.

Some Pros & Cons
- As investment home loans available are generally similar in nature to owner occupier home loans, the pros and cons are also very similar.

- As there may be various tax implications to do with property investment, we advise that you consult your financial advisor or accountant before investing in property.