Wondering whether property investment is right for you? If so, what type of loan would be best suited to the investment? Other considerations include whether to ‘positively or negatively gear’ the property, and if there may be potential capital gains tax issues to factor into the equation. Do you understand the best holding structure (like whose name it should be bought in and/or whether it should be held in the name of a Trust, Company or SMSF) for the property? Have you considered asset protection and how best to protect the new income stream (i.e. rent) that you rely on to fund some (if not all) the loan repayments? The team at the Domane FinanceGroup can help answer those niggling questions as well as offer some handy pointers on things to consider when buying an investment property.

In contrast to a home purchase, costs associated with an investment property purchase are usually tax deductible (e.g. interest, repairs, rates, depreciation, etc.). Of course, any rental income will generally increase your taxable income.

Investment loans can also be used for assets other than property. Borrowing to invest in shares has become a very popular strategy over the last decade. The interest on an investment loan is generally tax-deductible if the loan was used to purchase an income producing asset in Australia. However you need to be very careful when borrowing to invest, it is highly recommended that you seek professional advice in this area, particularly if you are considering split loans and apportioning income.