Best Investment Loans
There is little difference these days between an ordinary home loan offered to a home owner and that of a property investor who’s main aim is to make as much profit from his or her investment with rent and capital growth as is possible or to simply maximize taxation benefits.
There are however some extra features in an investment loan that are not necessary in a home owner loan such as interest capitalization and interest management.
Interest capitalization simply means a loan where the interest is not paid monthly when normally due but is added to the loan itself and paid off in total upon the loan’s maturity.
The best investment loans for some investors may not be the best investment loans for others because of the different needs of various investors. Therefore an investor will choose different borrowing options that are more suitable to wealth creation, interest and tax minimization than would a home owner. And differing investors will require different features to suit his or her own particular needs such as long or short term investments.
Best investment Loans – Important tip.
Always be open an honest with your lender no matter if he or she is not the same lender who finances your home or other investment properties you may have.
The knowledge of your full portfolio may well get you better rates and require a lesser deposit, even no deposit in some cases.
Best Investment Loans – loan choices.
Best Investment Loans are therefore your own personal choice based on your own personal needs and wealth creating ambitions.
Some of these loans are listed here:
- A line of credit loan. This loan will afford you the opportunity of carrying out renovations to your investment property without having to finance each project separately as you go along.
- An interest only fixed rate home loan with interest paid annually in advance. This particular loan will require an investment of your own up front when taking out the loan but will allow you to maximize the rental collections for the 12 month period between payments. The principal being taken care of with capital growth if you have done your sums right and have invested in the right property in the right location.
- An interest only fixed rate home loan with interest paid monthly in arrears. This loan allows the rental collections to pay off the interest as you go along therefore avoiding any up front payment. Once again the principal will be covered in times of rising property values and any inflationary trends that may be occurring in the economy generally.
- Variable rate home loan containing both principal and interest. Probably the most popular of the home loans. Very useful in times of dropping interest rates but can be worrying in times of rising rates.
- Variable rate interest only home loan. Cheaper than the combined interest and principal loan but vulnerable in times of rising interest rates. Good for short term purposes however.
- Fixed rate principal and interest home loan. Of greater benefit to those who take this type of loan out when interest rates have bottomed. The loan can be fixed at the lower rate for up to 5 years, 10 years with some lenders.
- Interest capitalization loans. A useful short term loan where interest payments can be added to the money borrowed. Can be a little expensive but if the situation warrants the money being borrowed to maximize fast rising property prices it can be useful. Used mostly as bridging finance.
The best investment loans for some investors may not be the best investment loans for others because of the different needs of various investors. Therefore an investor will choose different borrowing options that are more suitable to wealth creation, interest and tax minimization than would a home owner.
If you want to learn more about the best investment loans that are currently available to suit your particular requirement please contact us.
Related posts:
- Interest Only Investment Loan
- Westpac Fixed Rate Investment Property Loan Interest Only in Advance
- Westpac Fixed Rate Investment Loan
- Interest Management Loans
- CUA Fixed Rate home loans
- Foreign Investment Loans
- Westpac Fixed Rate Investment Property Loan
- 4 Key Considerations When Buying an Investment Property
- ME Bank Investment Loans and Interest Only Home Loans
- Fixed Rate Interest Only Mortgage
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded the 2011 Non bank Lender of the Year this feature-packed loan rewards customers with a bonus rate drop of 0.25% after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
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