FAQs
Q Can I afford it?
A At EFS we look at your current situation to let you know if we can save you money by refinancing into a better loan to save you money, and then we can tell you how much you can borrow to invest for the future. The next step is to look at some investment property examples to get an idea of how much money the investment property will cost to hold, if anything. Then once you find your investment property we will stress test the numbers to make sure that the investment is affordable in worst case scenarios.
Q What are the risks?
A By structuring the finance correctly and doing the correct due diligence we will show you how to minimize any possible risk. There are many steps an investor should be aware of before committing to their investment, due to our extensive experience in property investment we will show you the steps that should be taken to protect your investment.
Q Do I need to refinance my home loan?
A At EFS we have access to over 30 different banks and lending institutions, so we tailor your loan to suit your individual needs. If you are happy with your current lender and do not wish to change, you do not need to.
Q Why would I take out an interest only loan?
A A Usually investors choose to take out interest only loans to maximize the benefits of negative gearing, i.e.: tax benefits. With interest only loans you do not pay off the principle. This is the golden rule when it comes to property investment as you do not want commit more money to the investment property than what you have to, especially if you still have non tax deductible debt.
Q What is a Deposit Bond?
A Deposit Bonds are used when you do not have ready cash to pay the deposit for a property, usually 10% of the purchase price. Deposit bonds are cost effective and very simple. EFS can organize this for you. At the time of settlement funds from your loan will be used to cash in the bond. Deposit Bonds are very popular for property investors particularly if it is an off the plan purchase as a bond has a fixed cost for up to 24 months.
Q Does it matter which state I invest in?
A EFS have arranged finance for people investing in every state in Australia. Each state has different stamp duties and some have different requirements, we have purposed built software to show you how the differences affect you. So if you have found the property, contact us so we can look at the numbers in detail to see how your investment will perform for you.