Borrowing Guide
Investment loans
Thinking of investing?
Whether you’re building a nest egg or want to take advantage of tax savings, investing in property or other assets can be a great way to build wealth. It’s attractive for several reasons including rental income, capital growth and tax effectiveness. Plus with the right investment loan you may be able to use the equity you’ve built up in your own home and make your money work harder.
Tips for investing
Here are some handy hints if you’re thinking about investing in property:
- Seek independent financial advice
Before deciding whether property investment is right for you, it’s important you seek independent financial advice. While we can help you find the right investment loan, we cannot advise you regarding the most appropriate strategy or plan to achieve your financial goals.
- Use the equity in your home to finance your investments
It may be possible for you to borrow against the equity in your current property for future investments (in more property, shares etc). This can be a more cost-effective option than taking out a personal loan.
- Negative gearing
Many property investors benefit from tax savings through negative gearing – where the ‘return’ from rental income is less than the borrowing cost of the investment. The loss may then be used as a tax deduction. Consult your financial adviser to see if negative gearing can work for you.
- Do your research and beware of scams
If an investment opportunity sounds too good to be true, it usually is. Do plenty of research and seek independent property and financial advice, especially if you’re investing in an area you’re not familiar with.
Why not discuss all your investment loan options with an Aussie Mortgage Adviser and find the deal that's right for you?
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