So you want to be a property investor?

If the Great Australian Dream is to buy one's own home then ranking behind as the wealth dream is the desire to invest in property. Property investing has become the choice for those aspiring to create wealth for themselves. What could be better than real estate as an investment after all. The question is can I borrow to invest? Am I able to secure an investment loan?

* Investment loans are growing part of the mortgage landscape.
* You don't need to be wealthy to secure an investment loan.

Who can borrow?

First up, investment loans have gained in popularity since the mid 1990s. Until that time, banks dominated the mortgage market and investment loans were generally considered as available only to high income earners and those with assets such as their own home. When non bank mortgage originators came on the scene (such as Aussie Home Loans and RAMS), a raft of new products and much more competitive mortgages came on the scene too.

Strong economic growth spurred an entire generation of new investors and hence boosted the development of the investment loan. By 2001 more than 25% of all home loans originated were investment loans and the vast majority of these were for people on modest incomes; often without any other assets.

* Investment loans are issued on similar conditions to owner-occupier mortgages.