Whether you’re looking at investment properties for the rental income or to gain from capital growth, investing in property is a tried-and-true way to increase your wealth.

There’s a lot of advantages to investing in property, as compared to other asset classes – as well as weekly rent to collect, there are a number of tax advantages available, and there are so many elements under your control, from renovation and financing through to monetization – you can rent out the entire property, turn it into a boarding house, or list individual rooms on Airbnb!

The key to profitable property investing is to keep your costs low, of which there are:

  • Financing
  • Lender’s Mortgage Insurance (LMI)
  • Stamp Duty
  • Building Inspections
  • Conveyancing
  • Legal Charges

Naturally, financing is the most important factor, which can make or break the profitability of your project.

Fortunately, with LFG Loans by your side, you don’t have go through all the painstaking details or become an overnight expert in investment loans – we’ve helped hundreds of people throughout Perth & WA just like you get affordable finance for their investment project, and we can do the same for you.

This is what you get when you work with LFG Loans:

80% of rental income accepted for income serviceabilitytick
Deposits as low as 5% accepted (on some loans)tick
No Lenders Mortgage Insurance (LMI) approval requiredtick
Principal and Interest, as well as ‘Interest only loans’ availabletick
Competitive interest rates, matched to your circumstancestick

To find out if you qualify for investment finance, request a call-back at a time that suits you. We’ll find you a solution that will make your investment dreams a reality!
couple in investment property

Further Investment Loan Info

Investment Loan Types

There are a few varieties of investment loans available, each with their own benefits and weaknesses:

  • No-Frills Loans – Your basic home loan with none of the extras. Very affordable, not very flexible
  • Bad Credit Loans – Even if you have bad credit, you can still dip your toes into the investment game with bad credit finance, though they come with higher interest rates and more restrictive conditions of course
  • Low Doc Loans – Low doc loans allow the self-employed to get into the investing game. There are fewer documents required, but generally come with higher interest rates and lower max LVRs.
  • Construction Loans – These loans are useful if you’re building your property from scratch, as they allow you access to funds at different points of construction.

As well as the different types of investment loans, the various lenders that offer them all have different benefits and features, such as offset accounts, redraw facilities and more. It’s best to sit down with an expert and calculate everything together – they’ll be able to answer any financial questions you may have, and together you’ll be able to find the best loan for you.

Flipping vs Buying and Holding

2 popular real estate investment strategies are 1.) “flipping” (buying a house, renovating it and selling it for capital gains), and 2.) “buying and holding”, whereupon profits are gained both via collecting rental payments and naturally occurring capital gains (given that property prices tend to appreciate). If you’re a DIY’er who’s looking for quick money, flipping properties is great. If you’re a steady investor with time on your hands, you’ll be better served by buying and holding your investment for the long term.

To find out if you qualify for investment finance, request a call-back at a time that suits you. We’ll find you a solution that will make your investment dreams a reality!

FAQs

Is there a difference between a standard home loan and an investment loan?

Aside from perhaps having slightly stricter requirements, investment loans are largely the same as home loans. The stricter requirements come in as investment loans are generally perceived as being more risky.

Why tax benefits can I get from my investment?

You can claim on property tax deductions, as well as utilise negative gearing, which involves absorbing losses from the difference between your rental income and the interest you’re paying on the loan.