When taking out an investment loan it certainly pays to get the right advice. When buying an investment property, there are many items to consider including the structure of the loan and how it will affect your tax position:
1) Your future goals and whether a fixed or variable loan will best suited to your situation.
2) Whether you choose interest only, or principle and interest.
3) Do you need to be in a Family Trust arrangement.
4) What is the capital tax implementation if you sell in the short term.
5) Are you renovating to sell at a profit.
These are just a few examples of why it’s important to seek expert advice. Tick Finance offers a comprehensive service working with your tax adviser/accountant to ensure all bases are covered. As your portfolio grows it is important to have the right structure in place. Changing structures down the track can be an expensive proposition. When choosing the investment loan for you, we also look at the rental income you will be receiving, your actual job income and your outgoings for the new property so you know where you stand.
So which is better fixed or variable rate loans? This has always been the burning question on the lips of many investors! Fixed rates offer surety with the knowledge that the repayment will not vary over the fixed term. With variable rates the repayment moves with the market, giving greater flexibility, often with variable rates you can make larger principle reductions than you can during a fixed period.
We take time to go through this and the many other questions that come up when taking out investment loans. We are thorough in our analysis. We have years of experience to ensure a smooth transaction.