National Services Financial can help first time and experienced investors navigate the right path, structure and solutions for finance for the purpose of property investment.
There are many ways you can finance your first investment property, however it does depend on a few things:
- If you are purchasing the property by yourself or with another / others
- How long you plan to hold the property
- If you are going to live in the property at a later date
- Your current financial position
The most common and typical finance for investment property is interest only loans. However as the lending environment is constantly under review, especially for investors, the criteria to borrow investment funds are subject to change.
Ideally, investment property loans should be interest only because an interest only investment loan is FULLY tax deductible. Interest only loans can be fixed or variable. It is usually the best cash flow solution when used with good capital growth.
Generally, interest only loans are for a maximum five year term (depending on your lender) reverting to a principal and interest loan at the end of the agreed interest only term. However a further interest only loan can be negotiated at this time. The interest on your investment loan is tax deductible, making these types of loans attractive to investors.
Use the skills and expertise in our office to avoid any misunderstandings and to maximise your investment lending.