Delving into the world of property investment requires a specific understanding of various factors, and at Lowe Property Finance we are here to guide you through all the details of property investment loans. Our experts will provide you with a comprehensive overview, exploring crucial aspects such as the required deposit, the possibility of leveraging equity, and much more.
By entrusting us with your property investment loan, you’ll gain the freedom to concentrate on what truly matters – discovering the ideal property that aligns seamlessly with your investment objectives. Lowe Property Finance is dedicated to doing the legwork, ensuring you have the knowledge and support necessary to make informed decisions in your property investment journey.
How much deposit do I need for a investment property?
For residential property, a minimum deposit of 5% is required, while for a construction loan—building a property from scratch—it’s 10%. For instance, on a $1M property, 5% equals $50,000; on a $500,000 property, it’s $25,000.
Can I use equity to buy an investment property?
To utilise a home equity loan for buying an investment property, you need sufficient equity in your home. The maximum loan-to-value (LTV) on a home equity loan varies among lenders but usually falls between 80 and 85 percent.
Can I buy an investment property without a deposit?
While it’s challenging, it’s possible to buy an investment property without a deposit through various strategies. One common method is leveraging equity from an existing property or assets to secure a loan. Another option is entering into a joint venture with a partner who provides the deposit while you contribute in other ways, such as managing the property. Additionally, some lenders offer no-deposit or low-deposit loan options, though these often come with higher interest rates and stricter eligibility criteria.
Is it smart to use home equity to buy investment property?
Home equity is a low-cost, convenient way to fund investment home purchases. If you live in a stable real estate market and are interested in buying a rental property, it may make sense to use the equity in your primary home toward the down payment on an investment property.
