Property finance

Now is one the best times to buy investment properties while interest rates are the lowest they have been n the last 60 years. When considering buying an investment property you should use an interest only finance, so you can keep more money in your pocket. One of the biggest mistake new property investors make is they think they need to pay down there mortgage as quick as possible, which is not the case as you need to keep your serviceability available. By using an interest only finance you can buy more properties quicker, as you use your equity from your first home to buy home number 2 and so on. If you use principle and interest finance then you will not be able to service investment property 2 without it coming out of your pocket. Using interest only finance means you can simply have the interest paid out by the house for you.

Remember property investing is a long term investment so there is no need to pay out your mortgage as fast as possible as you accumulate more properties you will soon learn that interest only finance is the way to go when buying an investment property.

There are also other types of finance such as capitalizing the interest, which is good to use in a booming market, but considering we are in a global financial crisis it would not be wise to use this type of finance and is mostly used by experienced developers.