Are you a property investor? Do you have multiple property holdings that you use as rentals on a monthly basis? Are you looking for ways to free up cash in your business overhead, so that you can redirect some of it towards your highest-yielding property investments?
Many property investors would answer ‘yes’ to all those questions. Not every property investor realises the opportunities they have to free up cash simply by choosing a non-traditional mortgage option to finance their property acquisitions. At Peter Dunn Finance, we can help you secure investment property loans in Perth—helping you trim your overhead, maximise the liquidity of your cash assets, and use your money to make you more money.
Opting Not to Build Equity: Why Interest Only Loans Are Good Options for Property Investors
At Peter Dunn Finance, the investment property loans we offer in Armadale, Fremantle and South Perth are interest-only loans. In this type of loan, your monthly payments for the first five or ten years of property ownership only pay off the interest accrued on your loan amount. An interest only loan does not require you to make payments on the principal mortgage monthly, which means lower monthly payments. For a single property, these savings can be considerable—often in the hundreds of dollars. If you are a property investor and have multiple property holdings, you might be able to save thousands or even tens of thousands of dollars every month—just by having interest only mortgages.
The catch with this kind of investment property loan—and why it isn’t the perfect option for everyone—is that when you aren’t making principal payments, you aren’t building equity. Of course, there are still ways to gain equity: you own whatever you bought with the down payment, and you can make lump sum payments on the principal mortgage whenever you have cash free. Your properties can also appreciate in value—whether due to upward swings in the market or to renovations and improvements—and those appreciations give you extra equity.
However, many property investors aren’t necessarily chasing equity. They are looking to maximise the profits from their properties monthly. They can accomplish this goal in many ways, from remodelling to marketing and promotion. Of course, both of those strategies require working capital, which investors might not necessarily have on hand if they need to make hefty mortgage payments each month. Thus, having an interest only investment property loan for a Fremantle house or Armadale office building might be just about ideal.
Learn More about Investment Property Loans in South Perth, Armadale or Fremantle
If you are a property investor and want to get to a point where you aren’t spending so much of your monthly working capital on mortgage bills, give us a call at Peter Dunn Finance. We help investors like you find investment property loans in the Perth area. Call us on 0427 947 480 to learn more.