Want An Investment Property Loan To Buy a Rental Property?
An investment property loan or any loan for that matter requires you to have either a cash deposit or preferably for an investor, an equity deposit.
Now for most investors starting out to build a property portfolio this equity will be provided for by the growth in the value of their home.
By using this growth or equity in your home when you can and as early as you can, will prove to be a huge benefit to your cashflow situation and it can accelerate your property purchases and ultimate acculation of wealth very quickly.
Using existing equity in your home to investing in property is considered a very safe, secure, financially prudent and quicker way of being able to buy another property that will increase in value over time, and is exactly how I have accumulated my property portfolio.
However, whenever you purchase investment property you should consider all the benefitial tax implications, negative gearing, estate planning and the type of investment loan you choose. You must structure your loan cost effectively for both tax purposes and applicable deductions for the long term.
Remember, loans for rental properties are tax deductible. It is therefore highly recommended that (in a family situation) it is held in the name of the person paying the most tax and that this loan is interest only. (See finance section in my free book- How To Build Wealth with Property on An Average Income) available from this site for more details.
While property investment generally gives you access to the three brilliant benefits of:
*Rental income, and
*Tax advantages associated with negative gearing.
It is as always highly recommended that you talk to your accountant or financial adviser before purchasing any property and investing any money.
Return from Investment Property Loan (this page) to Investment Refinance
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