When it comes to investment properties, interest-only loans can be a game changer.
While they’re often misunderstood, they can be a powerful strategy for maximising cash flow and building your portfolio.
Here’s how an interest-only loan works and why it might be the right choice for you:
• Free up cash flow: By only paying the interest on your loan, you can keep your monthly repayments lower and invest the difference into other growth opportunities — whether that’s another property, shares, or simply building a buffer.
• Maximise tax benefits: Interest on investment loans is tax-deductible. By keeping repayments low, you can potentially reduce your tax bill, allowing you to put more money toward future investments.
• Buy more properties: With lower repayments, you can free up your borrowing capacity, enabling you to scale your property portfolio without being limited by high repayment amounts.
It’s important to structure your loans correctly and to regularly assess your financial position to ensure the interest-only strategy continues to work for you as your portfolio grows.
If you’re interested in learning whether an interest-only loan is the right move for your investment strategy, let’s chat.
We can help you analyse your numbers properly and find opportunities that fit your goals. Talk soon!