Let us find the right investment loan for you
Generations of Australians have built their wealth through property investment but like any investment it does come with some risk. Fortunately, the risk involved in pursuing an investment plan is significantly lowered with the assistance and expertise of a professional North Brisbane Investment Loans specialist like Finances 4U.
Property investment loans are not too different from regular home loans. There are two types of loans that tend to be particularly attractive to investors:
What you get with a Finances 4U investment loan:
- Low rate & no hidden fees
- Tailored to suit you
- You choose how to structure
- Tax efficient options
- Your own personal finance specialist
With most regular home loans your repayments are made up of interest charges plus a small repayment of the loan balance (principal). In this way you slowly reduce the original amount borrowed over the term of the loan. This is what we could classify as principal and interest repayment.
Where an interest only period applies the loan principal remains unchanged unless you choose to make additional payments and pay off the loan. You only have to pay the original amount borrowed if the interest only period expires or you sell the investment property.
This type of loan is useful for Brisbane Property Investors because during the interest only period:
- Your monthly repayments are less than they would be if you were to pay off principal as well.
- You can get a tax deduction for the interest payments, but not for principal repayments.
Line of Credit
Line of Credit, or equity line loans are similar to having a big credit card limit, but with interest accruing on the balance. A line of credit is an approved limit of borrowings that you can use a bit at a time or all at once.
This type of loan is useful for Brisbane Property Investors because:
- A line of credit loan allows you to draw from a fixed amount at any time to pay for any additional expenses such as repairs, renovations etc.
- It’s kind of like a credit card with a very large limit but the equity in your existing properties acts as security for the loan.