Hi, this is Jason Dwyer, managing director of station sponsor Dwyer Property Investments.
I grew up on The Coast and have been involved in the local property market most of my life.
My brother Wayne Dwyer has one of the most trusted building companies on The Coast, Dwyer Quality Homes.
Our family has been helping Queenslanders build beautiful homes and invest in property for more than thirty-five years.
Setting up the structure of an investment loan can seem overwhelming to first-time property investors, but it’s important to get it right.
Many people naturally approach the bank they’ve been with for years. However, this is not always the best choice.
Your regular bank may only have one or two loan types on offer and these might not fit your financial circumstances.
I’d recommend using an independent licensed mortgage broker.
A broker has hundreds of different lenders to choose from, including the Big Four.
It’s their job to guide you to the loan product that suits your specific needs.
A good broker will present different loan options and provide free advice on the best loan for you and how to structure it.
The one loan type does not suit all investors.
There are two main kinds of loans:
The first one is Principal and Interest, known as a P&I loan.
P&I loans are encouraged by lenders, as the repayments cover both the interest and a proportion of the actual amount borrowed.
Over time, the loan is paid off, and only the interest component of the repayments are tax deductible.
The second type is the Interest Only, or IO loan.
Its repayments are much lower, as you’re only paying off the interest. The principal, or lump sum borrowed, remains the same.
This loan suits the investor who wants to build a portfolio, buying multiple properties over a number of years.
It’s a lot to take in, but a mortgage broker will simplify the process and help get you the right loan at no cost to you.
I’m Jason Dwyer. Find out more about how to set up an investment loan at the Dwyer Property Investments YouTube channel, or call me for an obligation-free chat today.