If you’re borrowing for an investment property - rather than a home you’re going to live in - some lenders may charge a higher interest rate because they see the risk being greater. But not always! That’s why it pays to explore all of your options and research loan providers. Talk to one of investment property loan specialists or read more about loans for property investment at the Loan Studio.
Property Investment FAQs
Thinking of investing in a Carlisle Home? You probably have a ton of questions! Our property investment FAQs may answer yours, but if not, please contact us and we’d be happy to answer any questions you might have.
- Why invest in property?
When you’re building long-term wealth, investing in property has proved to be a low risk and stable investment strategy. History has shown that overall property values rarely go down. In comparison, investing in the stock market is a much higher risk investment. If you take the time to select your investment property well, you’ll not only benefit from a good return on your investment, but also receive steady cash flow from rental payments. You can also invest your super via a Self Managed Super Fund (SMSF), read more about investing in property with a SMSF here.
- How different will an investment loan be to my existing loan?
- Can Carlisle Homes provide me with property investment advice?
Yes. We recommend you talk to our financial advisors at the Loan Studio - an industry-leading finance team available 7 days a week to help you find the right property investment loan for you.
- Is Carlisle Homes a Licensed Mortgage Broker?
- What type of investment property will get me the best return?
When you’re investing in property it’s usually all about capital growth, so choosing a property that is most likely to increase in value is the most important thing to consider. Also, making sure that your property will provide you with steady rental income stream is also critical because this cash flow will provide income. To help you make the right decision on which type of property will help you get the best return for your investment please read our Property Investment Tips & Opportunities.
- I’m from overseas, can I invest in property in Australia?
If you are an Australian citizen or Permanent Resident buying property is pretty straightforward as long as you have the financial means to do so. However, if you’re neither of these the process can be a bit more complicated. >Please read the FAQs on the Australian Government Foreign Investment Review Board website.
- Which suburbs are Carlisle Homes located in?
- Which home designs are best for property investors?
With over 69 new home designs to choose from Carlisle Homes has a design for every investor’s budget! Choose from single or double storey designs from either our three design ranges:
- EasyLiving Range - home buying made easy
- The T Range - true display living
- Affinity – affordable luxury
- Do you only build in outer-suburban “greenfields” developments?
We also build on land you may already own, or as part of a Knock Down Rebuild project.
- Do I need a property investment financial advisor or accountant?
You may seek out your own property investment advisor or accountant or you can also chat with our property investment specialists at the Loan Studio.
- Can I use equity in my existing home to buy property?
Yes. If you’re already a home owner you may not need a deposit to fund the purchase of your investment property. Instead you may be able to use the power of your existing home’s equity.
If you have owned your home for a few years there’s a good chance you have built up some decent equity (the difference between your home’s market value and the balance of your mortgage). Want to know more about how to use the equity in your current home to buy your investment property? Get in touch with our property investment specialists at the Loan Studio.
- What's "negative gearing" and how does it work?
When it comes to property investment “gearing” just means that you’re borrowing money to invest in property. That’s what it means to get a loan to invest in property. The reason why investors do this is that “gearing” allows you to invest in an asset of far greater value than you could afford otherwise.
“Negative gearing” is when the cost of owing & maintaining a property (including interest on the loan – but not repayments on the principal loan amount) outweighs the rental income of the property. The reason why this is called “negative” is that the difference is a loss that can be claimed as a tax deduction, reducing tax payable on other types of income including your wage or salary.
- What’s “positive gearing” and how does it work?
Positive gearing occurs when the income from your investment property exceeds your interest expense and other deductions. In this case you may be subject to additional tax on income derived from your investment property.
- What is “co-ownership” and “joint ownership”?
Co-ownership and joint ownership means that you can pool your financial resources with friends and/or family to help you invest in property. However, this strategy carries more risk because one of your co-investors may become bankrupt or suffer other financial hardship. If you choose this strategy please ensure you access to the right legal advice to create a contract that outlines each applicant’s commitment and percentage of ownership after paying off the mortgage.
- How do I choose the right loan for my investment property?
The right loan will depend on several factors including how much equity you may have in your current home. If you need some help finding the right loan for you please contact our property investment specialists at the Loan Studio.
- How much can I borrow to buy my investment property?
The amount of money you can borrow depends on several factors. Please use our property investment calculator to determine how much you can afford to borrow.
Got a question that’s not here?
Please enquire now or call 03 9560 1779 and our consultants will be happy to answer any further questions you might have.