The Effective Loan Structure for Property Investors in Australia

Investing in property can be a great way to build wealth, but it’s important to choose the right investment loan. Here’s what you need to know about investment loans from Easy Money Loan:

  1. Types of Investment Loans
    • Interest-only loans: Lower repayments during the interest-only period, ideal for maximizing cash flow.
    • Principal and interest loans: Higher repayments but reduces the loan balance over time, building equity faster.
  2. Loan Features
    • Offset accounts and redraw facilities can help you manage your investment more effectively and reduce interest costs.
  3. Interest Rates
    • Investment loans typically have higher interest rates than owner-occupied loans. Compare different lenders to find the most competitive rates.
  4. Loan to Value Ratio (LVR)
    • Lenders may require a lower LVR for investment loans, meaning you might need a larger deposit. Generally, a maximum LVR of 80% is common.
  5. Tax Considerations
    • Interest on investment loans is usually tax-deductible. Consult with a tax advisor to understand the implications and benefits.

At Easy Money Loan, we specialize in helping investors find the right loan to maximize their returns. Contact us to learn more about our investment loan options and how we can help you achieve your investment goals.

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