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Investment Property Loans in Queensland

Buying your own home remains the great Australian dream – and purchasing a second home as investment property may help you take your wealth further. But, there are certain things to look out for when selecting and applying for the perfect investment property loans in Queensland. To discuss your loan options, and to find the investment loan that’s right for you, contact a Coronis Finance investment property mortgage broker.

How Can A Mortgage Broker Assist with an Investment Property Loan?

Working with a mortgage broker in Queensland is the easiest and most effective way to gain approval for an investment property loan. Why? Imagine a professional athlete trying to achieve a goal – do they try and muddle along on their own? No! They work with a coach; an experienced professional who understands what they’re trying to accomplish and who knows the most effective way to achieve positive results. A Coronis Finance broker can be like that coach – we understand the intricacies of obtaining an investment property loan and we have a wealth of industry experience on our side. Because of this, we can help to evaluate your current financial position, compare available investment loan products and talk to lenders on your behalf. But that’s not all. A Coronis Finance investment mortgage broker can also assist you by:

  • Offering a broad and competitive selection of investment loan products with fantastic rates.
  • Not charging you anything for our service (we’ll receive a commission from the lender once everything has settled).
  • Acting in your best interests at all times, as governed by the ‘Best Interests Duty’ legislation which applies to mortgage brokers (but not to banks).
  • Making things easier for you by offering flexible and convenient appointment options.
  • Handling all of the paperwork and managing any issues that may arise (during the application process or even after settlement).

Applying for an Investment Property Loan in QLD

No two investment property loans will be exactly alike. For this reason, the amount of time it takes for an investment property loan to be approved may vary depending on a range of circumstances. But regardless of how long the process takes, your Coronis Finance investment property broker in Queensland will be there to assist you at every turn. We’ll happily answer your questions, chase up applications and liaise with lenders on your behalf. As a result, you can feel confident that your investment property dreams are in safe hands.

Frequently Asked Questions About Investment Property Loans

When it comes to applying for a property investment loan, many first-time investors have questions. Fortunately, the team at Coronis Finance love answering questions! So, we’ve put together answers to the most frequently asked questions we receive about property investment loans.

What are the benefits of investing in property?

Property investment remains a preferred method for Australian’s seeking to build long-term personal wealth. Unlike other forms of investment (such as the stock market), the property market in Australia is considered to be fairly stable, so long-term growth is highly likely. Additionally, investing in property can deliver a consistent income stream in the form of rental payments, making it easier to manage the cost of the investment. Property investment can also deliver certain tax benefits, enabling investors to claim certain expenses as tax deductions (such as insurance, rates and property management fees).

How is an investment property loan different from a home loan?

Applying for an investment property loan comes with different lending criteria to a typical home loan. Lenders may be stricter with their borrowing criteria and could possibly charge you a higher interest rate for an investment property loan (although this isn’t always the case). When considering your application, the lender may look at typical rents and vacancy rates in the suburb where you’re planning to buy to ensure you’re making a sound investment.

How can equity be used to secure an investment property loan?

If you already own your own home then you may be able to use the equity in that property as a deposit for your investment loan. Equity is the portion of an asset that you personally own. For example, if your current home loan balance is $250,000 but your home has been valued at $600,00, then you have an equity value of $350,000. If you wanted to buy an investment property worth $500,000, you could use the equity in your home to provide a 20% deposit (ensuring you wouldn’t have to pay Lender’s Mortgage Insurance). In this scenario, equity would make it a lot easier to obtain a property investment loan, since you wouldn’t have to save up a $100,000 (20%) cash deposit.

What fees and charges are associated with investment property purchases?

The fees and charges associated with purchasing an investment property are similar to those you’d encounter when buying an owner-occupied property. These include:

  • Loan establishment fees
  • Solicitor or conveyancer costs
  • Pre-purchase inspections
  • Stamp duty transfer costs

If you’re planning to rent the property out through a real estate agency then you’ll also need to budget for advertising and property management fees (although some agents will deduct these costs from the first month’s rent).

How will owning an investment property affect your tax?

An investment property will be classed as being either positively geared or negatively geared once tax time rolls around.

  • Positive gearing is defined as when the income you receive from the investment property is more than your deductions (interest payable on the loan, depreciation, cost of ongoing maintenance, etc.). When this occurs, the income from your investment property may be taxed.
  • Negative gearing is when the income from your investment property is less than your expenses. When this happens then you may be eligible to claim a tax benefit.

If you’ve got any other questions relating to loans for property investment, feel free to get in touch. We’re more than happy to help.

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