Category Archives: Loans
Interest Only Loans
Is An Interest Only Loan For You?
Is a principal and interest loan better for you?
This depends a lot on your situation and probably more on what you think the property market is going to do if you are an investor.
Interest only loans have significant lower repayments as they have no principal amount attached. This alone [...]
Apartment Lending
There is the old question that comes up every now and then, – “Should I buy that studio apartment?”
Here is some of the “noise” that surrounds them-: “They won’t lend against small inner-city studio apartments, You won’t get approval if the floor size is less than 50 sqm, Student apartments are not an option, Some lenders won’t lend for apartments in large complexes, Hotel or motel conversions are no good, The location of the unit within the complex is important
Dont Cross Collateralise
Cross collateralisation occurs when the bank uses the security for one loan to secure another loan. What you want to aim for is to have any property you own, investment or otherwise, financed with free standing finance
Remember cross collateralisation can bring your real estate investment financing plans to a standstill.
Negative Gearing
The Benefits and Downfalls of Negative Gearing
One of the biggest hurdles in purchasing the first investment property is getting your head around the fact it may be “losing” money every week. What is called negative gearing is the fact the cash flow of the property is negative-Its holding costs are more than the rental income. [...]
Controllable Loans
Size Of Loans Crucial
With such mass movements of the first home owners moving onto the world of mortgages and purchasing new and second hand property there are many saying more caution is needed.
The government’s stimulus package for first homeowners has worked a treat if short term stabilization of the property market was intended. The extra [...]
