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Unless you are very wealthy and are paying for your investment property in cash, chances are, like most investors, you will have to borrow to invest. When investors negotiate with lenders, the most instinctive desire is to get a good deal, which will involve comparing the features of different loans such as interest rates, fees and charges, etc. Alternatively, some investors may engage the services of mortgage brokers, who could do some of that hard work. Regardless of the approach you choose, your effort could go to waste if the financing arrangement trips over the tax rules, which may inadvertently give you a tax problem.
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Here’s what to consider when comparing investment loans to maximise your cash flow goals.
Here are some of the most important features to look for in an investment loan.