Have you got some spare cash that you would like to invest?
Property investment may be a good option for you.
Property investment loans are very similar to other types of home loans. You can choose a fixed or variable rate; you can have features as redraws, it can be interest only or line of credit.
Before investing in property it would be wise to consider the advantages and disadvantages of investing in property to better understand the situation.
- Property can be more stable than shares or other investment
- You can benefit from capital growth and receive rental income
- The interest paid on an investment loan is tax deductible
- Property is made of bricks and mortar – something you can see and touch
- When the rental income doesn’t cover your mortgage repayments you may need to use your income to cover the mortgage
- When the interest rates are rising this may affect your return and decrease your income
- If the property is not leased out you will have to cover all the costs
- Costs involved obtaining and leasing the property
- If you only invest in property you may have little diversification