If you are planning to buy your first investment property to rent to tenants or next investment property, we can help you find the best suitable lender and the product. If you are building a portfolio of properties, whether commercial or residential, we can still help you funding at the right interest rate.
If you believe you are on a very high interest rate. Contact us and we will find the lowest interest rate for your investment property or the whole investment portfolio.
But before you invest in a property, it is always advisable to speak to the experts.
But for starting investors, the following are the general benefits and disadvantages of investment property.
* Property can be less volatile than shares and other investments.
* An owner can earn rental income from an investment property.
* Over the period of time, property is more likely to grow thus leading to capital growth.
* Expenses like interest, repair are claimable to reduce income, thus paying less tax.
* Unlike share market you don’t need specialised knowledge to invest in property. Although due diligence is still required.
* Depreciation on building, improvements, appliances etc can be claimed against the income.
* Negative Gearing: The loss of income can be offset against other income of an individual.
* There could be capital gains tax exemptions in some cases which could be very beneficial.
* The rental income may not cover the repayments. This will lead to out of pocket repayments.
* Higher interest rates will mean more out of costs.
* Tenant vacancy can be very costly.
* There is always a chance of property loosing it’s value.
* The entry and exit costs like stamp duty and selling fees are very high.
Do keep in mind that apart from the interest component you pay in your repayment there are other ongoing costs. Some of them are mentioned below.
Council and water rates
Building insurance
Landlord insurance
Body corporate fees
Land tax
Property management fees
Repairs and maintenance
It is very important that you buy an investment property in the area you are familiar with. It is advisable to buy investment property in an area with high rent, low vacancy rates and higher growth.
Do you know that rental income or proposed rental income can be used for servicing of your investment property loan? In other words the banks do take into account the proposed rental income which increases your borrowing capacity. For this banks may either get the rental valuation along with valuation of the property, or get a rental appraisal from a real estate agent.
At Oracle Ezy Finance, our team of expert mortgage brokers help you find the lenders and loan products from multiple lenders available. We aim to provide you an investment loan product with lowest interest rates and fees while also fulfilling your needs and objectives. We also keep in mind your future investment strategies while selecting the lender and loan products for your current circumstances.
We strive to provide you the best customer service from start to finish until settlement of the property.