Are You Eligible for an Investment Property Loan in Canning Vale , Piara Waters or Hammond Park Consult Peter Dunn Finance to Find Out

Buying a piece of property is almost always a major transaction—to the point that most buyers will go through lenders to secure financing rather than buying the property outright. However, depending on the type of property you are purchasing and your intended use for the property, you will have very different financing options available to you. If you are buying a residential property and plan to live there, you will likely opt for a traditional residential mortgage. If you are buying a property for business purposes, on the other hand, you will need to pursue commercial property financing, which works a bit differently.

An investment property loan in Perth, meanwhile, is something different still. If you are purchasing a property for investment purposes, you may prefer to take out an interest only loan as opposed to a more traditional mortgage. Does your property acquisition qualify as an investment property? Will you be able to qualify for an investment property loan?

Understanding What Defines an Investment Property

Before you start searching for an investment property loan in Armadale or South Perth, it’s prudent to take a moment to understand how investment properties are classified.

In a way, any property acquisition can be an investment. For instance, if you buy a house with a traditional mortgage loan, you are building equity over time and hoping the home will be worth more when you sell it than it was when you bought it. However, your primary goal in such a situation is to have a place to live—not to earn a return on investment.

Investment properties are properties that you purchase with the goal of earning a return on investment—preferably a significant one. Sometimes, investment properties manifest themselves as rental properties. You purchase a residential property in a popular neighbourhood, fix it up and start renting it out to tenants. Your ROI comes from monthly rental payments. Other times, you can use investment properties for real estate flipping. You buy an old or shabby house, invest in renovations or improvements and then sell it for a profit.

Finding Investment Property Loans in Canning Vale , Piara Waters or Hammond Park and throughout the Perth Area

In both situations, your goal would be to minimise spending and maximise earnings. Such a goal is difficult with a traditional mortgage, which is why it is worth your time to consider investment property loans in Canning Vale , Piara Waters or Hammond Park. Often, investment property loans are interest-only loans, where your monthly payments only go towards covering the mortgage on the loan. Your payments do not go towards the principal mortgage, which means you are spending less.

At Peter Dunn Finance, we can help you find investment property loans in Perth. We can also help you decide whether this type of financing is right for you. The drawback of interest only loans is you don’t build equity, but that sometimes isn’t an issue for property investors. Your earnings from the property come either from monthly rental payments or from equity that you add to the house through improvements. In either case, you can benefit from trimming your overhead costs on the property, which getting rid of principal payments certainly accomplishes.

If you are interested in chatting about investment property loans in Canning Vale , Piara Waters or Hammond Park, call Peter Dunn Finance at 0427 947 480.