When you are buying an Investment property you are making a business decision.  

Investments

You will be expecting this property to appreciate in value and in turn deliver you a profit through income and/or capital gain. The investment property may be commercial, residential or rural / agricultural.  

Borrowing to invest in property can be an excellent way to build wealth, however the success of this strategy depends on a range of variables such as: 

• The costs associated with the investment property 

• The risk associated with long periods of non-tenancy 

• The risk associated with poor tenants who create trouble, do not look after the property and consistently do not make rent 

• The capital gain associated with the investment versus the total repayments of principal and interest over the term of the loan 

• Potential changes in legislation that may alter taxation laws (e.g., negative gearing, capital gains tax) 

• Your ability to eventually repay the debt and the effect that capital gains tax may have on this 

At TLC we understand the complexities associated with investing. When borrowing to invest (unlike for your home) for example, sometimes an interest only loan can be utilised to help retire non-tax deductible debt held elsewhere.  

Our in house specialist referral partners are available to discuss gearing strategies if desired. They can discuss for example such important issues as ownership of the investment property which can impact the amount of tax you will pay over the life of the investment and estate planning concerns. In particular they have a great deal of expertise in borrowing within Self Managed Superannuation Funds and can explain this complex area effectively. In most cases they will also consult with your Accountant in helping you to make your decision. 

It is best to consider all facets of ownership early in the process and before an investment property is found. Once the ownership decision has been made and preparations finalised, TLC will take over and help you secure your investment loan with a minimum of fuss. 

In today's market the lending criteria for most investment loans is much stricter than owner occupier home loans. Most lenders require a larger deposit and costs can be higher. Our industry knowledge will be used to your advantage as we assess an appropriate lender and loan product/s for you.  

As with our owner occupier home loans our service does not end on the successful loan application and settlement. We will review your loan/s on an annual basis and keep you up to date with the changing market. In this way you will stay abreast of developments that may present opportunities to you over time.  

If you utilise the My Money Mentor program we will work with you to help identify when you might be ready to invest again and eventually pay down your debt.