Investors - No Cash Required
The words "No Cash Required," will often prompt people to think of first home buyers. This form of buying is perfect for those individuals who are looking to purchase property but haven't accumulated enough of a deposit for a suitable loan.
With the cost of everything in this day and age increasing, it has become more and more difficult for first home buyers - even investors - to save enough of a deposit to purchase property.
This has been recognised and this beneficial "No Cash" option is now available to property investors. Traditionally, in order to expand their portfolio, investors were required to wait until a substantial deposit had been accumulated. Alternatively they could use equity, on existing property, once it had risen to the point of being able to cover purchase costs on another dwelling. Many investors found that they were able to service another loan, however were trapped by not having the required deposit amount. This waiting often left investors vulnerable to missing out on opportunities and growth potential.
Investors, who qualify for a no cash home loan, are entitled to borrow 100% of the purchase price. There are no out of pocket expenses required, other than that of legal fees, lender mortgage insurance (LMI) and stamp duty. Please be aware that there are other options available if you would like the additional expense of LMI and stamp duty to be covered. Successful applicants are not restricted to the type of residential property that they are permitted to purchase. The selection includes freestanding homes, units, apartments and townhouses.
Some of the Benefits for Investors:
Build Portfolio Faster:
By not having to limit themselves to waiting for their deposit to build, investors are able to jump back in the market sooner. Being able to borrow 100% of the value enables investors to increase the number of properties they own at a faster rate and maximise capital gain.
Negative Gearing:
Watching a large proportion of your income be handed over to the tax department can often be quite disheartening. However, by taking advantage of a no cash loan, investors are able to immediately purchase property and start benefiting from tax reductions instantly. It may be wise to seek an accountant or financial advisor to assist you in discovering the best possible ways that you can gain maximum leverage from your properties.
Keep Your Cash in Your Pocket:
Many investors find the thought of not having to delve into their own personal cash, very appealing. When a 100% home loan is used, the use of personal cash is avoided. The money, that isn't touched, can continue to be used for their other purposes such as family requirements, other business or property renovations.
The challenges in today's economic society have prompted more options to become available to investors. It is just a matter researching and locating one that best suits your needs.
