Investment Loans
Investing in real estate can be an excellent way to create long-term wealth and secure your financial future. However, buying a property outright can be expensive, and not everyone has the cash to make such a significant purchase. That's where investment loans come in.
An investment loan is a type of loan specifically designed for purchasing an investment property. Unlike a home loan, an investment loan is not meant for buying a primary residence. The purpose of an investment loan is to help you finance the purchase of an income-generating property, such as a rental or a commercial property.
Benefits of an investment loan
Leverage your funds: You can use the loan to cover a significant portion of the purchase price, which means that you won’t need to put up as much of your own money. This allows you to invest in more properties, which can help you diversify your portfolio and increase your returns.
Tax benefits: You can deduct the interest on your investment loan, as well as any property-related expenses, such as repairs, maintenance, and insurance. This can significantly reduce your tax bill and increase your cash flow.
Potential for capital gains: By investing in property, you can earn significant capital gains when you sell the property. This can provide a significant return on investment and help you achieve your financial goals.
Passive income: You can use the rental income to cover the mortgage payments on your investment loan and other expenses, such as property management fees, taxes, and insurance. This can help you build wealth and create a financially secure future.
Types of Investment Loans
Investment loans come in different forms, and it’s essential to choose the right one for your investment strategy.
Margin loans: Margin loans allow individuals to borrow funds to invest in managed funds, approved shares, and ETFs. This type of loan is a popular option for investors looking to expand their investment portfolio beyond traditional savings accounts or term deposits.
Investment property loans: These loans are designed for borrowers who want to acquire properties with the intent to sell or rent them. Investment property loans can be structured in different ways, such as interest-only or principal and interest, and can be fixed or variable.
With access to hundreds of loans from a range of lenders, we at SB Experts take the hassle out of finding the perfect investment loan for you. Our team of experts will do the research and negotiate a competitive rate to ensure that your investment loan is tailored to your unique needs and works for you.