Investment Property Loans

There are so many benefits that come with investing in property. It can offer greater returns than most other investments out there, providing you with security, tax benefits and opportunity to build a profitable portfolio.

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Customers from all walks of life

Whether you are a first-time investor, have an existing portfolio you are looking to build on, or are looking to get into commercial property investment, the team at NSW Mortgage Corp can help you get the right loan for your circumstances.  

The right loan for your needs

We want to help, so apply or call us on 1300 137 778


        
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What Is An Investment Property Loan?

Investment property loans are a type of home loan that is taken out and used to purchase an investment property. The difference between this and the traditional home loan simply comes down to your intended use of the property you are purchasing. A traditional home loan is also known as an owner-occupier loan. The intention is to buy a property that you can move into and live in. With an investment property, your intention is to rent it out to tenants to earn an income, it to flip it and make a property.

Why exactly does it matter how you intend to use the property when you take out a home loan? Often, the distinction is made at the interest rate you are charged on your loan. Investment property loans typically cost more.

In recent years there has been a rise in the number of people applying for an investment property loan.

In response, the Australian Prudential Regulation Authority (APRA) announced a 10% cap on new investor lending. This meant a reduction in the number of investment loans going out, so as a result, lenders have lifted the rates to offset this change.

Our expert team at NSW Mortgage Corp works with you to get the best rate possible on your investment property.

Why Should I Invest In Property?

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Renting

You can buy an investment property and rent it out to tenants for ongoing income. Many then use this money to help pay off the loan and build wealth at the same time

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Flipping

The process of renovating a property and selling it. With strong research and understanding of the real estate market this can a fast, profitable investment.

The Benefits Of Investment Property

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Security

Unlike other investments that tend to be quite risky, an investment property is the opposite. While there are always ups and downs in the property market that affect prices, the underlying trend is one of steady growth. This means in all likelihood, your property will go up in value over time, making it a worthwhile investment.

Low cost
Low cost

All you have to manage is a 20% deposit and then get a creditor to handle the rest. As a result of the security that often comes with owning a property, banks and other lenders will normally loan you more money than any other investment out there. Not only is there less risk involved with upfront costs, but the costs are much lower for you as well.

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Complete control

Investments by nature are risky. However, an investment property allows you to make all the decisions. If you aren’t getting the return you expected, you don’t just have to sit back and take it. Instead, you have a number of options available to you. You can do up the place to make it more appealing to renters, add furniture, do a complete renovation and flip it. It’s up to you to make it work.

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Tax benefits

Investment properties also come with different tax benefits. This is something you will need to do your research on to discover how it works in your particular situation.

What Is The Interest Rate On Investment Property Loans?

As mentioned above, the interest rate on investment property loans is higher than that of your typical owner-occupier loan. The first thing you have to decide is the type of loan you want to take out.

  • Variable investment property loans: In this instance, the interest rate changes with the market. Some of the best variable investment home loans, paying both principal and interest, sit at around 3%.
  • Fixed investment property loans: this is where the interest rate is fixed for the term of the loan. Paying principal plus interest, this type of rate is currently sitting closer to 4%.
  • Interest-only investment property loans: As the title indicates, you simply pay interest and none of the principle with these loans.

At NSW Mortgage Corp, it is our aim to offer the most competitive loan product for your needs. We offer an obligation-free consultation to discuss your circumstances and help you work out which investment home loan is best suited to your situation.

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How To Buy Investment Property In Australia

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When it comes to buying an investment property, it’s important to do your research. You want to choose the right property and get it for the right price. This means you need a general understanding of the property market, and the history of the market in the area you are looking to buy.

Always speak to the locals and real estate agents to get a feel for an area if it isn’t one you are familiar with. They will tell you the ins and outs (the residents especially). You want a place that is near transport, so it’s convenient, close to healthcare, food and shops, childcare, schools and other facilities. You need to do your research about the area and look into rental prices so that you can do the maths before you commit.

Once you are ready to start looking for a property you want to buy, it’s important to get your pre-approval for investment property loans. Remember, buying a property can take time and is subject to changes in the market. It’s important to be patient and not rush into anything, as this can affect how well your investment goes.

How To Buy Investment Property In Australia

Committing to one or more investment property loans is a long-term decision. It usually has a term of 20 to 30 years, but the good news, you don’t have to use the same lender for the whole term.

At NSW Mortgage Corp, we can help you refinance your investment property loans with better features more suited to your situation. The process is simple. We will look at the value of your investment property and then can assess which lender will suit your refinancing requirements.

We keep you involved each step of the way, to ensure we are meeting your needs, before submitting an application to a new lender.

Refinancing has the ability to save you money and give you better features you can benefit from for the term of your loan. Be sure to get in touch with us today.