Investment property loans are a popular way to obtain the money needed to buy real estate and expand wealth. There’s a lot of potential income to be earned, especially if you plan to invest in Gold Coast houses. The key to success is arming yourself with the necessary information to make the right decisions as you finance your investment.
Borrowing in Australia is Easier than Most Places
The good news is that there aren’t many restrictions related to investment laws and bank regulations in Australia. That means it’s much easier to invest in real estate compared to other countries. If you’re an Australian citizen or permanent resident, that means you won’t have to go far to find a great investment option. If you’re from outside of the country, this could mean a unique opportunity to generate income overseas.
What if I Want to Borrow 100% of My Investment?
Is it possible to borrow 100% of the funds needed to buy an investment property? Yes, it is. There are two ways to go about getting financing to cover 100% or more of the sale price.
If you have parents who are willing to help you secure financing, you can consider a guarantor loan. When going this route, you would use your parent’s property to secure the loan. When doing so, you may be eligible for a loan amount of up to 105% of the sale price. No Lenders Mortgage Insurance, or LMI, is required when using a guarantor loan.
Property You Already Own
If you already own property, you can use it as security when you borrow. The equity you already have in the existing property would be used as a deposit. This option will allow you to borrow either 100% or 105% of the total value of the new property based on which lender you choose.
Investment Property Loans without Equity or a Guarantor
Can you get an investment property loan if you have no guarantor and no equity in another property? Yes, it is possible to borrow however you will not be able to request the full amount. When no equity or guarantor is presented, a maximum of 95% of the value of the property can be borrowed.
Learn More About Investment Property Loans
Everyone’s situation is different, which is why different types of financing are available. If you plan to invest in real estate, you need an expert to help you weigh your options and find the best solution based on your needs. Contact Catrina today to discuss investment property loans and other home financing opportunities.