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Investment: The purchase or ownership of a security to make money by gaining income, increasing capital, or both. Investments may also include artwork, antiques and real estate.

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Below, you'll find extensive information on leading investment mortgage loan articles and products to help you on your way to success.

Investment Property
By Dino Livanidis

Buying an Investment Property in Australia or any of the states in Australia can be exiting and at the same time stressfull.

As you are probably aware there are so many ways to get started when investing in property, so I would highly recommend you talk to a Financial Specialists that actually specializes in property all the time.

Because they want to get more of the market the Banking criteria's can change almost everyday so this is why you need to speak to someone that is up to speed with it all, if you would like me to refer you to a few financial specialists please email me (support@npis.com.au).

Important point to understand is that your paying for the mortgage so make sure you best the best structure and loan facility to suit your lifestyle and cashflow. Due to so many changes in the lending system I will keep to the general lending rule.

Firstly- the bank will need a minimum 10% deposit, then you need to pay mortgage insurance, stamp duty and loan costs. Now depending on which state you purchase in, the stamp duties can vary immensely. Eg Melbourne has the has the highest stamp duty charges where QLD has one of the lowest stamp duty charges.

It also depends if the investment property you are wanting to purchase, it it is off the plan or an existing property.

Just remember, if it is off the plan you only pay stamp duty on the land not on the total amount of the finished property.

EG- $300,000 Purchase Price of the Investment Property

- $30,000-10% Deposit

- $ 4,950-Stamp Duty on the land value $180,000 (QLD)

- $ 2,000-Loan Costs approx

- $ 1,500-Conveyancer Approx

- $ 3,600-Mortgage Insurance

- $42,050 Total needed to start

I have a lender that can do 100% lending on a Investment, no money down, email me if you would like his contact details.

Many developers will either ask for a Cash, Bank Guarantee or a Deposit Bond which is getting used less and less these days.

Please Note- If you're building a new property and there will be progressive construction costs make sure you borrow the extra money for the interest payments along the way.

Many Accountants will tell you that you cannot claim the interest payments when building an Investment Property.

They are so wrong because the Tax Rule States - As long as the property is being built for Investment purposes then the interest is claimable against your taxable income, but not the charges like rates etc, only the interest.

The most easiest way to purchase an Investment Property is by using the equity from your own home or you can also use some-one else's home as the security and make an agreement or partnership. This way you will save yourself Mortgage Insurance and most importantly you wont need to put any cash down for a deposit.

I know many people do not like using the home as security to purchase an investment property, if your concerned about that there is a way that you still can separate the home to investment property.

The Answer......All you do is take out a loan against the home for the deposit and to cover costs, then you go to another bank to finance the investment. Therefore you will have 2 investment loans, 1 with the new bank and 1 with your own bank, both will be fully claimable against your income tax as they were both set up for investment purposes.

Or if you would like to separate the Investment property from the property used for security all you do is wait a few years for the investment to have increased in value and then have the bank do a valuation on the Investment Property to prove there is enough equity so it can stand on its own. Remember the banks need 20% security and they will allow it to be alone, the banks should release the property used for security.

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