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Investment Loans

Investment loans represent an excellent avenue for building long-term wealth and creating passive income streams.
These loans enable you to leverage existing capital such as savings, or equity held in your home, by borrowing additional funds to purchase investment property.

Smyth Loan Co has many options in terms of lenders, products & rates for investment purchases – we highly recommend that you speak with us to determine your maximum potential & borrowing capacity if you are thinking about becoming an investor.

Most lenders will consider a lend of up to 90% on an investment, meaning 10% of the purchase price + costs, is the minimum deposit/equity requirement.

Smyth Loan Co streamlines the application process, alleviating stress and simplifying everything for you.

Navigating the complexities of investment property demands careful consideration of numerous factors, from location and property type, to your financial goals & objectives.

We recommend having both an accountant & a financial advisor on your side to ensure the best taxation advice & long term investment strategies.

As mortgage brokers we are unable to give specific advice, however we can find you the best suited options loan wise for your needs.

Equally vital is an understanding of the array of expenses associated with investment property purchases which include stamp duty, Government Registration fees on Transfers & Mortgages, Legal fees, Rates & Lax Tax, and associated costs.
Smyth Loan Co will always run through these costs with you and include them in them in any calculation or estimated to purchase a new investment.

As per our detailed ‘Home Loan’ page – there are a myriad of options available for investment loans:

  • be that variable OR fixed rate;
  • principal & interest OR interest only repayments
    (the latter is normally utilised for negative gearing purposes OR if your goal is to focus of paying down your primary residence);

  • a basic option with redraw OR packaged option with offset.

We’re here to educate you on the differences of between these options, ensuring the best suited loan is chosen towards your needs.

When used wisely, investment loans are powerful tools for wealth creation. Here’s how:

  1. Leverage: One of the primary benefits of investment loans is leverage. By using borrowed money to invest, individuals can control a larger amount of assets than they could with their own capital alone. This amplifies potential returns – when investments perform well, the profits are calculated on the total value of the investment, not just the investor’s initial capital.
  2. Diversification: Investment loans allow investors to diversify their portfolios more extensively. Instead of being limited by their available funds, investors can spread their money across multiple assets or investment opportunities, reducing overall risk. Diversification can help mitigate losses in case one investment underperforms.
  3. Capital Appreciation: With the potential for higher returns due to leverage, investment loans can accelerate capital appreciation. This means that over time, the value of the invested assets may increase significantly, leading to greater wealth accumulation.
  4. Tax Benefits: In many cases, the interest paid on investment loans is tax-deductible, providing investors with potential tax benefits. This can further enhance the attractiveness of investment loans as a wealth-building tool.
  5. Access to Opportunities: Investment loans enable individuals to seize lucrative investment opportunities that they might not have been able to afford otherwise. Whether it’s purchasing real estate, acquiring stocks, or funding a business venture, these loans provide access to capital when it’s needed most.

In noting the above it is also essential to consider that investment loans also come with risks.

Market fluctuations, interest rate changes, and unforeseen circumstances can all affect the performance of investments and the ability to repay the loan. Therefore, it is crucial for investors to conduct thorough research, assess their risk tolerance through us at Smyth Loan Co, and develop a well-thought-out investment strategy prior to taking out a loan.

In conclusion, having he right investment loan is key for long term wealth creation when used carefully and in conjunction with a sound investment strategy.
Investment loans can accelerate your ability to create money and are a vital tool if looking to build a property portfolio.

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