Property Investment Loans for additional income stream
Property Investment is Australia's favourite Investment. Buying a second home to gain rental income and tax deductions on the interest is appealing. Eventually the rental income will pay off the loan automatically and you will own a property that provides you an income stream.
Many people have created wealth by just repeating this system over and over and are now in a very financially secure position.
Sometimes this is the best way for a single person to enter the property market and build up an asset base. The Equity you build in your investment property can put you in a great position when it comes to buying a family home in the location you want. If this is your plan, you will still need to look at the basic advice and criteria needed in the new home loan section first.
As with all Home Loans, the interest rates and availability of funds will be determined by the amount of Equity or Deposit you are going to have in your new investment. It will also be the perceived risk of your investment that will determine how good a deal you can get.
Different Lenders will look at different percentages of the rent you will receive to go towards the repayment of the loan. They do not use all of the amount, as there is always a risk you may not get paid the rent on time or the property may remain empty for a period of time. So how much a lender will allow to go towards a repayment can make the difference between a Yes and a No. You of course must look at the worst case scenario and have a plan to cope with the repayments if things go wrong.
These types of loans will only be available once a person has put themselves into a Good Credit and Reliable Financial position.
Fast Debt Help can help put you in a position where you are ready to move into the Investment Market and then find the right Lender to suit your circumstances. If you need help getting there, Fast Debt Help can put a budget plan together to help you into a position to make investments.
Are you ready? Let's see what is available to you in the way of finance today. Call us on 1300 825 010 or fill out the form on this page.