Investment Property Finance Centre

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For those looking to grow their wealth through property investment in a city like Brisbane, taking out a loan could very well be just the thing you need to help you get started. However, times have changed and taking out a property investment loan today is a very different process to what it was in the past.

There are many new risks associated with investment loans which require investors to complete thorough research upfront. Our Investment Finance Centre specialises in assisting people like yourself to ensure you avoid these risks and pitfalls and to make the most informed buying decisions you can.

We have a wealth of information available online though if you prefer chatting to someone over the phone or in person about your plans, contact us at any time.

If you’re looking for a home loan in Brisbane, chat with our team today.

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An investment home loan is a type of loan that can be taken out for the purpose of purchasing an investment property. It is a mortgage solution for people who are considering buying a house they intend on renting out or a property from which they would like to receive income. If you can’t afford to buy the property outright, taking out a loan can help you get your foot in the door.

Such loans have key differences to standard home loans including:

  • Stricter eligibility requirements
  • Higher loan-to-value ratios (LVR), meaning you’ll need to raise a larger deposit
  • Slightly higher interest rates on average
  • Expenses made on an investment property can be claimed as tax deductions
  • You will be subject to capital gains tax if you intend on selling the property

Tax deductions you can claim on an investment property include:

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  • The interest on the investment loan
  • Insurances:
    • Home and contents insurance
    • Landlord insurance
  • Commission paid to real estate agents
  • Maintenance costs and council rates
  • The declining value of depreciating assets
  • Construction costs or capital works
  • Travel costs associated when you travel to the property to do an inspection, maintenance or repairs

How can I get a loan for property investment?

Over the years, there have been a number of restrictions added which affect who can take out investment home loans. It is, now more than ever, important for you to ensure you’ve done your homework and know your capacity for borrowing upfront.

At Time Home Loans, we help all the investors who work with us understand what different lenders look for before approving a loan. You need to know the area you’re seeking to buy the property, how this will impact your loan and any council restrictions that will apply.

If you’ve got your eye on your next investment property or if you are thinking of getting started with investing, we can help. Our process ensures you will be buyer ready when the right time comes for you to enter into purchasing negotiations and loan approvals.

1. Establish where you are seeking to buy
2. Look at restrictions lenders have for those areas
3. Consider postcode or council restrictions that may apply and affect investment capacity
4. Develop a proposition indicating which lenders would be the best to consider for the property in your chosen area.

How can I avoid the risks associated with taking out a loan for investing?

As with all our clients, we are committed to our client care process which helps you consider the best financial decision for your situation. In the case of taking out an investment loan, we’ll help you sidestep common pitfalls by ensuring your investment property:

  • Increases in value
  • Is structurally sound
  • Has no building or pest issues
  • Is within your borrowing capacity

Prevention is better than cure when it comes to mitigating financial risks. That’s why our team is renowned for doing our homework upfront and ensuing our clients are beyond ready when the time comes to apply for a loan.

What to look for in an investment loan

Different lenders offer different terms on their loans. Some will be more favourable to you than others. Things to consider when comparing loans available to you include:

  • Extra features like offset accounts and redraw facilities
  • Security and guarantee requirements
  • Ability to pay off the mortgage faster
  • Ability to make additional payments, or a top up facility
  • Security and guarantee requirements
  • Fixed rate, variable rate or split rate loan options
  • The feature to transfer the loan from one property to another

You’ll also want to explore the associated fees and costs with the loan as these are typically higher for investment loans than they are for residential home loans:

  • Loan establishment fees: One-off payment charged at the start of the loan
  • Lender’s Mortgage Insurance (LMI): Insures the lender against the possibility you might default on the loan repayments
  • Ongoing fees: Any fees charged on a monthly or yearly basis including admin or service costs
  • Discharge fees: charged when you pay out the loan in full. Also known as a termination or settlement fee
  • Early exit fee: If you pay out your loan in full before a certain time frame you may be subject to paying an exit fee
  • Break fee: A fee charged if you change your loan structure from a fixed rate loan to another loan before the fixed rate period ends

Easy number crunching with these tools:

You can use our simple calculation tools to get an idea of your borrowing capacity.

If you have more questions, need a hand with your investment loan application or would like specialist advice about the best options for your situation, reach out to our friendly team. We’re based in Brisbane and have a track record of success with helping clients access loans to finance their next investment property.

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