Our mantra – Keep it simple!

Investment loans do not typically need all the bells and whistles that owner-occupier home loans have. The three most important features of an investment loan are:

  1. Low interest rate
  2. No (or very low) ongoing monthly or annual fees
  3. The ability to make Interest Only repayments (but cheaper rates are available if you pay P&I)

Paying just the interest on your investment loan allows you to reduce your total monthly costs which frees up more money that you can use to pay off your original owner-occupier home loan. The interest on the investment loan is tax deductible, while the repayments on your owner-occupier loan isn’t, so it makes sense to pay as much off your owner-occupier loan as possible.

Before you dip your toes in the water, it’s important you know what’s under the surface. A wise mentor of mine once told me something that has been told to countless other people throughout history:  “Don’t invest in something that you don’t understand”.

So before you take the leap and buy your first investment property, learn as much as you can about the good, the bad, and the ugly. Having a Pandanus Finance professional on your team is a great start. We explain property investment in a no-nonsense way, arming you with the knowledge required to invest confidently. Setting up your finances intelligently once you have invested is supremely important. Reducing your interest as well as your tax in a way that doesn’t get your thrown in jail should be pretty high on any investor’s list of priorities, and therefore is something we spend a lot of time explaining and setting up correctly.
Pandanus Finance will help you through this process by providing you with ongoing support and the following services absolutely free of charge:

  • RP Data and Residex property reports
  • Somersoft Property Investment Analysis Reports
  • Full financial health check
  • Detailed explanation of ‘gearing’ (both positive and negative) and how it affects you
  • Current cash flow analysis
  • Detailed overview and recommendations
  • Borrowing capacity and repayment estimates
  • Projected investment return calculations
  • Loan comparisons from over 25 different lenders
  • Suggested cash flow
  • Pre-approval and full application leg work
  • Construction project management
  • Budgeting spreadsheets and explanations
  • Annual financial health checks

You know how it all works. A detailed explanation of the difference between an offset account and a line of credit is not really what you are after. You just want to see which loans are available and let someone else do all the legwork with the bank.
Pandanus Finance will help with all your investment loan needs as outlined in the ‘First Time Investors’ section above. In addition to those, we can also:

  • Somersoft Property Investment Analysis Reports
  • Negotiate a better rate with your existing bank
  • Lower the interest rate on your other loans
  • Ensure your “good debt” is not getting dirtied for taxation purposes
  • How to recycle your bad debt into good debt.
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