Mortgage Choice logo
Ralph Drummond

Investment Loans

                   

 

Some FAQ Investing in Property Questions

Can I use the equity in my home as a deposit?

With the recent property boom, many home owners have seen a large increase in the equity they have in their property. Instead of finding a cash deposit to buy an investment property, you could use this equity as the deposit. Equity is the value of an asset not subject to any lender’s interest. For example, a property worth $500,000 with a mortgage loan of $150,000 has equity of $350,000.

What fees and charges should I consider?

Costs such as establishment fees, solicitor fees and stamp duty which can add up to several thousand dollars.

Instead of trying to find cash to pay these fees, take them into account in your borrowings. That means you don't need thousands upon thousands of dollars in savings to get started.

What is negative gearing?

A property is negatively geared when the costs of owning it – interest on the loan, bank charges, maintenance, repairs and capital depreciation – exceeds the income it produces. Simply put, your investment must make a loss before you can claim a tax benefit.

What is positive gearing?

Positive Gearing occurs when the investment income exceeds your interest expense (and other possible deductions). Note that you may be subject to additional tax on any income derived from a positively geared investment.

You should also consider any other costs involved when deciding on your investment property strategy.

 More information on your Investment loan:

  

 As soon as you're ready to get started on your Investment loan, let me know - I would love to help.

Call me directly on 0411 724 940 or book a quick chat on the button below. 

Call: 0411 724 940  Book an appointment


Get the right home loan for your needs

Our mission is to find the right home loan for your individual needs and to always have your best interests at heart. Plain and simple. Which is why we have such a wide range of lenders to choose from. We can search through hundreds of products to find something tailored to your situation. ~

Contact us


close
Contact your existing broker?
exist-broker-avatar

contact-us-broker-1Smoother experience as they have all your information.

contact-us-broker-2Better understanding of your financials to provide tailored advice.

contact-us-broker-3Faster response compared to being matched with a new broker.

Contact existing broker