Choosing an investment property loan

Buying an investment property requires time, care and effort in order to find the property that offers the right mix of risk, rental return and ultimately profit. Choose the wrong property and your investment strategy could go up in smoke. The same principle applies when choosing the right investment property loan.

Your investment property loan is an essential financial tool that can help or hinder your property investment strategy.

The one loan fits all maxim does not hold and it is vitally important to ensure your investment loan meets your investment goals and objectives. It must take into account things like:

• how long you intend to hold the property before selling - for example its no use locking yourself into a five year fixed rate loan if you're wanting to sell after two years
• whether you are willing or able to contribute your own funds towards the purchase price and other acquisition costs
• how the loan structure will support your financial and tax planning - for example is an interest only loan a better alternative than an amortising principal and interest loan?
• whether you will be positively or negatively geared
• whether you want to be able to pay your loan down quickly
• whether you want to be able to add to your property portfolio
• whether you are investing predominantly for capital gain or to rental returns

Everyone's situation is different and choosing the wrong loan product can undermine your investment strategy and cost you thousands in interest and fees.

You can find the right investment property loan by discussing your needs with one of Top Choice Home Loans's preferred banking partners or with one of our home loan specialist partners.