Over the last week I have been seeing large amounts of media coverage on this equation and the simple answer is yes.
Why?
because if you buy with care and due diligence you should be able to find a property that will yield 5.5% or more. Then take a 5 year fixed loan for 4.99% (pick a lender there, as there are a few offering this).
Pay for insurance and rates etc, add back a bit of depreciation and all of a sudden you could very well have a property that is costing you nothing to own. Then add some time and rent should increase and hopefully the value of the property will to. It could even help you pay off your current owner occupied mortgage if the numbers are right. Now obviously this is a very general example. But if you want to know more then get in contact with us here at Mortgage Advice. As the way we work for you and not the banks will mean we can almost always add further savings to this, including additional tax deductions*
It is this kind of thinking that is pushing parts of the market up in some parts of the country. Now the real question is whether this strategy/loan option is right for you. So how about you get in contact- we will assess your personal situation and see- no cost or obligation.
Our Mortgage Advice Saving Calculator should also be able to show what we can do for your current lending. Its only 5 questions and should take 1 minute….. literally.
*the best person to verify this for you is your Accountant.
Please note this is a general article and should not be considered as financial advice.
