Investment Property Mortgages

Investment property mortgages are more associated with veteran home buyers and property developers and represent different challenges than regular mortgage loans. At Perth Mortgage Brokers, we have an impressive track record in working with property developers to provide the best conditions for investment property mortgages. 

This has seen us have ongoing relationships with clients that recognise our expertise and value. Investment properties represent a substantial opportunity for profit, and by employing mortgage brokers like ours, you increase the chance of setting conditions for a more profitable transaction – read on to find out about investment property mortgages, and how we can assist you with them.

Defining Investment Properties
An investment property is really just a property purchased with the goal of making a profit. It can be used as a rental property, which provides ongoing income, or it can be sold immediately. In that case, you’d be looking for a market upturn that increases the value of the property, or you’ll have undergone renovations to increase the selling price. 

Of course, some people do both – renting first, and then selling at a profit. Investment property mortgages can give you manoeuvrability and flexibility with how you manage an investment property and its finances.  

Why Invest?
The terms set by investment property mortgages can be very favourable for those looking to make money, and the banking regulations and restrictions in Australia aren’t particularly prohibitive. Investment loans tend to be highly-leveraged, this means you can maximise your returns by only having to provide five to ten percent of the property value upfront. 

This leaves a good chance to make a low-investment high-capital profit in a relatively short period of time. Our advisors can give you information on the best terms for setting up an investment property mortgage, whether you’re looking to sell quickly, or you need a mortgage for a rental property.

Assess Your Finances
Although potential profit looms, investment property mortgages aren’t for everybody – they can be quite expensive, especially if you’re borrowing at a high LVR (loan to value ratio). Lenders typically prefer those in a strong financial position, with a good credit history. 

You’re more likely to make a better return if you have a better financial history, as the lending conditions will be more favourable. We’ll help assess your finances and work with you to uncover whether you’re in a position to commit to an investment property mortgage, and how profitable it’s likely to be for you.

Tax Benefits & Negative Gearing
Negative gearing is the loss made when your interest and running costs are higher than your investment income – so how does this benefit you? If you act decisively with our advice, it is possible to get into the market early and raise your investment income incrementally to cover your expenses, and while doing this, claim the net loss as a tax deduction against any other income you have. We’ll work closely with you to ensure you take advantage of all the tax deductions and incentives that you’re entitled to.