An investment property is similar to any further investment: the objective is to produce a profit. In real estate, this is gained through revenue (such as rent) or during a beneficial resale. The method in which a possession is used has a crucial impact on its value. Investors, time to time accomplish studies to settle on the best – and most beneficial – use of a property. This is often referred to as its premier and best use. Few properties can be developed in more than one method (commercially zoned property, for example) and investors can make best use of income by determining the premier and finest use.
Building a new home? Or planning a major renovation in your existing home? If yes, then a construction loan could be your most advisable option. Select My Loan can help you source the most appropriate loan solution for you.
It is important to understand how a Construction Loan is different to a normal Home Loan. The difference between a construction loan and a standard home loan is that instead of a lump sum payment at the time of settlement, the loan is usually drawn down in stages. Payments (or draw downs) coincide with the initial purchase of the land followed by a number of key construction stages. This results in your monthly repayments gradually increasing as construction progresses until the building is finished.
If you are looking for a Construction Loan, talk to us at Select My Loan.