Investing in property means that you need a well planned out strategy. Strategising generally starts with choosing the best investment home loans to help finance your target property. Our team of lending specialists will discuss all your financials and come up with a strategy that best suits your financial position currently. We look around for the best deals and rates, but with the flexibility to do what you need to do. Often the best features of investments loans are those that help to significantly reduce the cost of the loan, helping you to save thousands of dollars a year and get the property paid off faster. You can look into options for your investment loan using a mortgage calculator to get a rough idea of what you could pay.

The Best Features of Investment Home Loans Central Coast

Interest Only Payments

An interest only home loan enables borrowers to pay only the interest for a certain period of time. The principle amount of the loan stays intact for the loan term. Interest only home loans have lower monthly payments, but investors can also take advantage of tax claims by taking out an interest-only loan. This is particularly useful if you are renting out your investment property.

If you pay more interest than you receive in rent for the year, it means that your property is negatively geared. You are then entitled to claim the difference between the amount of your interest repayments and your rental income.

Repayment Holiday

When you invest in property, you often rely on the rental income to cover the majority of the mortgage, if not all of it, however there are instances when the properties are left unoccupied and therefore are unable to supply you with a steady rental income to help cover the mortgage. In cases like this you can take a repayment holiday, meaning you can take a break from making repayments for a certain period of time. Generally for up to 1 year. Generally your lender will only allow this to happen if you are ahead in your payments. The only disadvantage of this is that the interest will continue to accrue so you need to be careful of this.

Offset Account

Another great benefit to an investment home loan is the offset account which you can use to replace your everyday bank account. An offset account is usually used as an alternative to having an extra repayments and redraw facility with the aim of bringing down the interest you pay. The reason an offset account is such a good choice for investment home loans is because you can use it as a place to “stash your cash” while you save for your next investment property, and it also helps in bringing down the interest you pay on your current loan. Saving this money helps them to save enough funds for the next investment property.

Line of Credit Facility

An investment home loan with a line of credit facility means that you are able to access a predetermined amount of credit. This means that you can borrow extra money when you need it without having to apply for another loan.

Generally the amount you borrow is secured against the equity you have in the property.