Investment Loans Melbourne – investing for wealth creation

We are a specialist mortgage broker providing mortgage broker services for investment loans and mortgages in Melbourne. Investment loans are generally used to purchase an investment property (house, apartment, land or a commercial or industrial property) or a share portfolio.
Buying an investment property is a popular choice for personal wealth creation. You can rent out the property and use the rental income to pay off the investment loan so that you eventually own the asset outright – an asset that will have increased in value. Using an investment loan (margin loan) to purchase a share portfolio uses the same rationale but usually for a lesser amount.

As with any significant financial activity you should do your homework and consider several key factors before proceeding. Our advice and insights can help you understand the finer detail of how investment loans work and our brokering service will help identify the ideal investment loan lender for your circumstances.

Melbourne property market overview

The Melbourne property market is ideal understood by looking at houses and apartments separately. House prices in Melbourne are holding their value but aren’t achieving the huge gains of recent years. Apartments however are in abundant supply which is keeping prices down so they currently represent the ideal opportunity to secure future capital gain.

Share market overview

The share market has been volatile in day to day terms recently but in the long term is still increasing in value. As always, the ideal advice when investing in the share market is to take a long-term view and invest in blue chip shares that offer greater stability and reliability.

Investment loans for property investment in Melbourne

Investment loans allow you to invest in assets that you wouldn’t otherwise have access to. The value of the asset then increases beyond what you pay for it – you pay back the loan and have profit left over. If you are in a high-income bracket there are also tax benefits you can leverage to maximise your investment and reduce your tax burden.

This asset building strategy works ideal when you have a knowledgeable investment adviser who can steer you toward the right investment loan. Just like a mortgage there are different types of investment loan packages on the market with varying charges and interest rates.

If you are thinking about borrowing to invest you’ll come across the terms “negative” and “positive gearing”.

Negative gearing is when the income from your investment (rental income or share dividends) is less than what it costs you to own the investment (interest charges and other expenses). People negatively gear an investment initially to make a loss with the expectation that they’ll make up for it with a capital gain when they sell the investment. This loss is then used to reduce your taxable income.
Positive gearing is when the income from your investment is higher than what it costs you
(interest charges and fees) to have the investment.

As you can see it is prudent to get good advice when considering and investment loan as there is a lot to consider. However, an investment loan is a great way to build personal wealth so it is worth your consideration. Speak to our professionals today.

For the ideal advice on investment loans in Melbourne call us today