Investment Loans

Investment property loans made easy

Investment Property Loans

Investing in property could increase your overall wealth. Rather than playing the stock market, many Australians prefer to invest in bricks and mortar.

There are two categories of investment loan:

renovate a property for sale, making a quick profit
rent out as a long-term investment.

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Advantages Of An Investment Loan

There are many advantages of investing in property in Australia. Here are a few:

Land, residential or commercial, there is no restriction on what type of property you can invest in. The only ban is that whatever you invest in cannot be your primary place of residence.
Balancing the stricter lending requirements for investment loans, the expected rental payments from your property will be taken into consideration. With a smaller deposit, this may be an advantageous factor in getting you the loan.
You may be able to reduce your tax bill by claiming for expenses (repayments, maintenance) spent on the property, also known as negative gearing.
You may be able to buy another investment property with the equity you’ve built up in the original investment. (Equity is the difference between what your property is worth and what you owe.)
If you are in a high marginal tax rate, you may be eligible for tax deductions in interest payments.

Things To Consider Before Getting An Investment Loan

Because investment loans are riskier than normal mortgages, there are several factors to consider before applying for one.

Investment loans come with tighter qualifying requirements.
Interest rates, closing costs and appraisal fees are usually more expensive for investment loans compared to home mortgages. At MDM Finance, we can help you find a lender who doesn’t charge high ongoing fees or closing costs.
There is no way to guarantee constant rents. Repairs and market changes can mean your property may be empty for weeks or months. You must be able to pay out the loan if the investment doesn’t bring in the money you thought it would.
Your property may be empty but you will still have to pay stamp duty and legal fees as well as ongoing council rates, owner corporation fees, rubbish collection fees and so on.
A change up or down in home loan interest rates may adversely affect your property’s value, your repayments, your income and your profit margin.
Negative gearing may earn you a tax benefit but it is called ‘negative’ because it is, after all, a loss of income.
Capital Gains Tax (CGT) may swallow up a sizable chunk of your profits when you sell your investment property, as your taxable income will include your profits from the sale (minus what you originally bought it for). Ask us at MDM Finance to see if you can get a CGT discount.
Investment Loans Broker in Melbourne
Applying for an investment loan is best done with a qualified mortgage broker. At MDM Finance, we have years of experience and expertise in helping people get investments loans.

Call us today to help you invest well for the future

03 9855 9290