Tag Archives: investment property

Investing in Houses

Investing in Houses

A standalone house on its own title is often considered a reliable investment, hence the phrase “as safe as houses”.  But buying a house as an investment property does not guarantee you will make a good return.

When looking at buying an investment property, the old adage “Location, location, location” is probably a better indicator to use than the type of property that you end up buying…

Use Interest Only or Pricinpal and Interest on Your Investment Loan?

Interest Only or Principal and Interest

For the smart investor, an interest-only home loan has several advantages over the more standard principal and interest home loan. Those advantages include:

  • Lower monthly payments
  • More available cash
  • The ability to use the extra cash for further investment

With a standard principal and interest property financed loan, you pay a certain amount of the loan as interest every month while also paying down some of the principal (also known as the balance).

With an interest-only investment mortgage, the payment you make every month only covers interest, freeing the part that would cover the principal for further investment…