Email: info@a-f-s.com.au
INVESTMENT LOANS
Email: info@a-f-s.com.au
Yes you can.
Experienced investors use the equity or capital within a property to purchase another investment property. Most of these investors started by use equity in their first home or investment property. Using equity up to 80% of the value of the property derives no Lenders Mortgage Insurance however, if you use more than 80% up to 95% of equity, you will need to pay lenders mortgage insurance unless you have another property to cross securities both properties.
Negative gearing describes the situation where the overall costs of owning an investment exceeds the income it generates. The shortfall from the investment may be claimed as a tax deduction which reduces your overall taxable income
As long as you have residential security with enough equity to accommodate the refinancing of loan or loans to a maximum borrow of 80% of the property, you are able to utilise residential property interest rates for business purposes.
Means the rental income derived from the investment property exceeds the finance costs and ownership of the property, i.e. lender interest and fees, investment property and maintenance costs.
Some investors like the idea of only investing in apartment or units due to the minimal maintenance requirements in these investments and the benefit of just receiving rental income with less fuss of taking care of the investment as the unit complex or real estate agency is appointed as property manager to oversee the investment. Arguably, apartments & units generate goods rental returns with minimal capital growth.
On the other hand you have the investors who don’t like apartments or units as they prefer houses to generate good capital growth in an investment property to help generate equity to purchase the next investment property. While they wait for the equity to build within an investment property they also receive rental income to cover most of the expenses and finance borrowing cost.
*Information here subject to change at any point of time
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