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Leverage into the next property

Superannuation is great but wouldn't it be even better to retire knowing that you have substantial rental income and property assets supplement your super?

Whether you are looking to buy your first investment property or if you have one or two under your belt already, brokers are well positioned to be able to advise on how you can make it happen. Lenders will always look at two things: the value of your property compared to the size of your loans  AND how much income you receive (including rental income). Find out how long before you can make the next purchase.

You may not need to contribute any cash to the purchase at all, which is handy if you want to use your savings elsewhere but it can also mean that your tax deductible loan amount is maximised.  

 

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Subdivide and Prosper

Not for the faint hearted, this strategy of property investing can provide excellent returns on capital. Looking at the finance side of the equation first will help you see how subdivision is achievable. Whether you plan on building on the subdivided block or just selling off the land, a broker experienced in subdivision is an excellent "string for your bow".

Interest Only Loans

Interest only loans are a great way to channel your cash into the right place. Rather than paying principal off your investment property, use that money to pay down your own home quicker to maximise your investment property tax benefits.

You can either arrange for your loan to be a Line of Credit or simply a normal loan with an interest only period. Lines of Credit are interest only indefinitely - this means you don't have to pay out the loan until the end of the term (usually 30 years). Lines of Credit usually attract higher interest rates than normal loans.

 Normal loans with interest only periods are very similar but at the end of the interest only period (usually 5 years) you either need to start paying principal and interest repayments OR request another interest only term.

Make an appointment with a broker to find out what's right for your situation.

 

Extremely Convenient, Extremely Good Rates, Extremely Trustworthy!

 

Extreme Mortgages and Finance Pty Ltd atf Extreme Mortgages and Finance Unit Trust ABN 28710229405 Finance Brokers License Number FB5580