Construction Loans
Whether you’re completing major renovations, knocking down an existing property or re-building and starting fresh, a Construction Loan may meet your needs.
Building a property or undertaking major renovations is a big project, so it’s important you know what to expect at each stage. Construction Loans give you the flexibility to draw down the loan at various stages of the build (also known as Progress Payments).
Your Progress Payment Schedule will typically have 5-6 stages during the construction period.
For more information on what to expect contact us for more information.
Why should you consider property investment?
One of the reasons why people favour property as an investment is because it is a tangible asset that you can see. It’s not just numbers on a screen. Reliability and predictability in terms of long-term capital growth and rental return are some of the reasons why property is favoured.
For those within a high tax bracket, leveraging the benefits of negative gearing is also a favourable part of investing.
What is the difference between an investment loan and an ordinary home loan?
The fundamentals of an ordinary loan and an investment loan are more or less the same. However, an investment loan has a slightly higher rate than the normal loan and that’s more or less the only difference. You are offered the same options and features between the two, which means that they cross over well.
How much deposit do I need for an investment loan?
It depends on the situation and whether you have got equity which we can leverage. Cash requirement is about a 10% deposit plus stamp duty. If you have owned an investment property before – you might not need a deposit because we can use your equity, however, this is a case by case basis so speak to the team at Right Step Finance.