Property Investment & Finance

Property investment advice is always a good option because the Australian real estate market is on the rise again. Whether you want to invest in a unit or a house, an investment property is sure to reward you well in the long run.

Factors to Consider Before Investing in Property

  • Purchase and Maintenance Costs: Investing in units may lower the costs whereas a house will likely involve more expenses. Whatever you buy, make sure you allow for maintenance in when calculating your budgets.
  • Budget and Risks: Even though property investment in Australia is generally low risk, buying real estate is always a big decision and every large purchase involves risk. Consider your budget carefully before settling on a unit/house purchase.
  • Location: Clearly, suburbs identified as potential growth areas are the best places to invest in so do your research thoroughly. Appreciation of property value will decrease your financial burden in the long run.

Property Investment Finance Options

  • Mortgage:The mortgage options for investment loans are same as those for home loans.
  • Interest Only Finance Option: You only repay the interest on the loan, every month for a fixed term. This can be helpful if property value increases over time, but that does not always happen. Values may go down, sometimes dramatically, so this type of loan carries a greater risk. At the end of your contract you will still owe the entire amount of your loan to the lender.
  • Home Equity: You can get your home equity evaluated by professionals. With positive equity in your current home, you can withdraw funds and invest in an investment property.
  • Taxation and Depreciation: The Australian Taxation Office (ATO) allows you to claim depreciation on the building and items within, helping you reduce your tax liabilities on the property. You can also increase your tax deduction by negative gearing your investment property. The term gearing describes borrowing money for investment. When the cost of owning the property is higher than the incomes generated from it, it is termed as negative gearing and your tax obligations get reduced to the extent of the shortfall.

At MacArthur Mortgage Finance, we are committed to serving up the best mortgage and business finance options for you. Contact us today for free property investment advice or Property investment in Sydney.