No Result
View All Result
  • Home
  • Business
  • Marketing
  • Finance
  • Home and Garden
  • Education and Career
  • Fashion and Beauty
  • Health
  • Tech
  • Home
  • Business
  • Marketing
  • Finance
  • Home and Garden
  • Education and Career
  • Fashion and Beauty
  • Health
  • Tech
No Result
View All Result
No Result
View All Result
Home Finance

What Is an Owner Occupied Home Loan and What Are Its Benefits?

by Miles Austine
in Finance
0
0
SHARES
101
VIEWS
Share on FacebookShare on Twitter

If you are looking into investing in a home, congratulations! This is an exciting time. Before you can find a property that you love, you need to figure out your budget and what kinds of funding options are available. This article can help you start.

Investor Home Ownership Types in Australia

When you start looking at investor home lending options, you will see one choice being an owner occupied home loan and the other being an investment home loan. In Australia, you can invest in residential real estate under two conditions: to occupy part of the home while renting other units of the property out to others, or to invest in a property without residing there.
 
For individuals who choose to live in the property they invest in, the law considers their property to be “owner occupied.” Otherwise, it is an “investment” property. Learning more about both can help you decide which kind will work best for your plans. 

Owner Occupied Home Loans 

In general, an owner occupied home loan is a loan that homebuyers can apply for to receive financial assistance for a property they intend to live in. While at first glance it may seem like this is only an option for individuals in the non-investor market, this is not always the case. In fact, it is not uncommon for investors to qualify for owner occupied home loans as well. 
 
In order to take out an owner occupied loan for an investment property, the law requires you to make part of the property your full-time residence. For some homes, this is not possible, but it is a common practice among investors who own apartment buildings and condominiums. 

Benefits of Owner Occupied Home Loans

One first thought, the idea of living in your investment property may not be your initial plan, but there can be benefits to doing so. For one, it can be a notably cheaper option. In addition to the up-front costs of your loan, however, you will also benefit from always knowing what kind of condition your investment is in.
 
Think about it: When tenants know that the owner lives on their property, they are more likely to care for it. Also, if something ever goes wrong, tenants have the added reassurance of knowing you live close by. For some renters, having an accessible landlord is priceless. 

Investment Home Loans

If you are unable to qualify for an owner occupied loan for investment property because you do not plan on living in the home yourself, you may be eligible for an investment home loan. With this lending program, you can receive a loan for a home you are purchasing without the requirement of living there. 
 
With investment loans, there are some points to keep in mind. For one thing, these types of loans can be harder to find. In addition, they may usually come with higher interest rates.

Benefits of Investment Home Loans

Although it might sound like the best option is to live in whatever you decide to invest in, that is not necessarily the case. At the end of the day, it comes down to what will work best for you and whatever you plan to do with the property.  Plus, you should not let the higher rates alone push you away from investment loans. Often, they come with their own kind of benefits.
 
For example, in many cases, investment home loans come with discounts that are not available with owner occupied home loans. Additionally, it is worth thinking about the potential of investment loans for expanding your reach. As your investments grow, you can continue investing until your net worth increases enough to pay off the loans. If you have big plans for your property investment, it might be worth looking into this latter type of home loan. 
 
To figure out which route you want to go with your future home investment, ask yourself if you like the idea of living on the property your purchase. If it pros outweigh the cons, then an owner occupied loan may be best for you. On the other hand, if you do not like the thought of living there, an investment home loan can also have its perks. 

Previous Post

AI in agriculture

Next Post

10 Best Kids Romper in 2021

Miles Austine

Miles Austine

Next Post
10 Best Kids Romper in 2021

10 Best Kids Romper in 2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

The Power of 3D Visualization for Product Development

The Power of 3D Visualization for Product Development

3 hours ago
Rejuvenate Your Spirit at an Oceanfront Resort

Rejuvenate Your Spirit at an Oceanfront Resort

3 hours ago
Scent Your Way to Better Sleep with Pillow Spray

Scent Your Way to Better Sleep with Pillow Spray

3 hours ago
SLS Changes the Game for Cosmetics and Cleaning Products

SLS Changes the Game for Cosmetics and Cleaning Products

3 hours ago
The Ultimate Venues for Effective Team-Building

The Ultimate Venues for Effective Team-Building

3 hours ago
Indulge in Decadence With the Top Premium Chocolate Brands of the World

Indulge in Decadence With the Top Premium Chocolate Brands of the World

3 hours ago
No Content Available

Get Blogo is a web magazine platform. Our aim is to provide trending information. So that, our readers get benefited from this website. Our team is here to provide the latest news and information on different topics.

Category

  • Animals
  • Apps & Software
  • Automotive
  • Biography
  • Business
  • Celebrity
  • Education and Career
  • Electronic & Gadgets
  • Entertainment
  • Fashion and Beauty
  • Finance
  • Fitness
  • Food and Recipes
  • Gaming
  • Health
  • Home and Garden
  • Jobs and Services
  • Law
  • Lifestyle
  • Love and Relationship
  • Marketing
  • Miscellaneous
  • News & Politics
  • Nursing
  • Outdoor
  • Parents and Children
  • Politics
  • Real Estate
  • Social Media
  • Sports
  • Tech
  • Tips and Tricks
  • Travel
  • TV Shows
  • Writing
  • Trending
  • Comments
  • Latest
Drew Pritchard Wikipedia – Wife, Divorce and Antique

Drew Pritchard Wikipedia – Wife, Divorce and Antique

March 7, 2023
Catherine Southon Wikipedia, Cancer, Husband and Children

Catherine Southon Wikipedia, Cancer, Husband and Children

December 28, 2019
Catherine Southon Wikipedia, Cancer, Husband and Children

Catherine Southon Wikipedia, Cancer, Husband and Children

0
Drew Pritchard Wikipedia – Wife, Divorce and Antique

Drew Pritchard Wikipedia – Wife, Divorce and Antique

0
The Power of 3D Visualization for Product Development

The Power of 3D Visualization for Product Development

March 22, 2023
Rejuvenate Your Spirit at an Oceanfront Resort

Rejuvenate Your Spirit at an Oceanfront Resort

March 22, 2023
  • About
  • Team
  • Privacy Policy
  • Editorial Policy
  • Terms & Conditions
  • Contact

Copyright © 2020, Get Blogo

No Result
View All Result
  • About
  • Contact Us
  • Disclaimer
  • Editorial Policy
  • Get Blogo – Web Magazine
  • Home 4
  • Home 5
  • Privacy Policy
  • Team
  • Terms And Conditions

Copyright © 2020, Get Blogo