Benefits of getting finance for an investment property
Most investors who purchase a property as an investment choose to get finance. In many cases , you would use your own home as security and borrow the maximum on the investment property for a few very good reasons.
Finance for offshore properties
- To maximise your leverage position
- Tax benefits
- Maximise your cash on cash return
However, when you are dealing with offshore property, it's much harder to get finance for your investment property.
As an Australian investor, you are known as either a 'foreign national' or an 'alien' to the US banks. An alien to any US bank is seen to be a much larger risk than someone who is an American citizen. The reason behind this is that it is much harder for the Bank in America to chase you in Australia if you default on your payments. The loan amounts are also quite low in comparison to an Australian mortgage and for this reason the rates of interest are significantly higher in most cases.
USPSA has agreements with US lenders
But, here's the good news! If you meet certain criteria, our loans partners can assist you with a loan that may be lower than the Australian interest rates. Each loan will be treated on an individual basis.
The biggest advantage to borrowing funds in the US as well as in Australia is that you can really use the power of leverage to enable you to purchase multiple properties at discounted rates.
Each property purchase and loan structure should be considered thoroughly before purchase to ensure that the investment is a good investment for your portfolio. Our lending partners will assist you with a full cash flow analysis allowing for all the borrowed funds and rental incomes that you will expect with your purchase. These reports will assist you in making an informed financial decision on each property that you are keen to purchase.