Investing for either positive or negative gearing requires the finance to be structures to allow the investor maximum flexibility with their strategy. FinanceTrain understand investment finance and can provide access to property investment education seminars, workshops and property tours.
One strategy that is popular involves splitting your home loan so that you create a master equity account. This is used for deposits to purchase investment properties, borrowing the balance through a different lender. Holding costs for the investment property are calculated and three years worth of holding costs are quarantined within the master equity account.
Rent from the investment property comes back to the master fund, making the payments on the initial outlay. The master fund then pays the second loan on the investment property. If it fails to rent for a period of time it makes no difference as there are three years worth of payments in the account. The result is an investment property that 'pays its own way' with no changes to your lifestyle.
Over time the capital growth in the property can increase the value of your overall equity. Monitor the growth and then go again when your position allows! For more information on this and other finance strategies for investment, get on-board with FinanceTrain now. Naturally you should always get investment advice from a qualified source before proceeding with any property investment strategy. FinanceTrain do not give that advice, just how to structure the finance to meet the needs of your strategy!
If you are ready to roll with your investment strategy then fill in our Investment Loan Information Form to allow us to assess your options. We'll come straight back to you to discuss.