At Lend A Loan, our Melbourne Mortgage Brokers offer more than just property investment loans. We’ll help you execute your entire investment strategy, with expert advice on the best investment loan products for your needs. We’ll consider everything about your financial position, discuss your investment goals with you and then determine the right investment loan products to help you achieve them.
Regardless of your investment purpose, our panel of over 45 lenders can provide loans to suit your specific need. We can help you with great options for property investments – both commercial and residential – and help with loans to purchase property inside your Self Managed Super Fund.
If you have a 30% cash deposit, then a loan should be much easier to get. Alternatively, we could help you access the equity in your existing home or investment property to use for your deposit. Either way, we’ll show you how.
What is a property investment loan?
An investment loan is a type of loan that is commonly used for gaining more funds for purchasing a residential or commercial investment property. It is a mortgage solution for individuals and companies who want to buy an investment property and rent it out to receive some income from it, but can’t afford to buy the investment property without borrowing extra funds.
There are many differences in investment loans; investment loans are different to how standard home loans work because they have much stricter eligibility requirements. Investment loans often require a higher loan-to-value ratio (LVR), meaning investors need to raise a more significant deposit to be applicable for these types of loans. They also have a slightly higher interest rate on average than owner-occupied residential home loans do.
Expenses that you make for your investment property can be claimed as tax deductions to reduce your taxable rental income while you’re renting it out, and your capital gains tax if you sell the property. The tax deductions you can claim for an investment property include:
- Construction costs
- The Interest paid on the investment loan
- The decline in value of depreciating assets
- Home and contents insurance and landlord insurance
- Real estate agent’s commissions and other
- Maintenance costs such as painting, plumbing, electrical and other repairs
- Council rates
- Travel expenses to the property to do an inspection, maintenance or repairs