Investment properties: What you need to know

If you’re interested in investing in property, here are some tips to help you decide if it’s the right option for you and how to make the most of it.

Top tips to maximise your return 

• Check rental prices in areas you’re considering buying in.
• Understand that investing in property tends to be a longer-term commitment.
• Don’t over capitalise on rental property renovations.
• Consider the cost of upkeep to the property when budgeting.
• Strata fees will apply for properties on shared land such as units.
• Consider employing a property manager and include their fees in your costs.
• Use appropriate tax deductions to offset property expenses -  there are various deductions (including the interest on any loan used to buy the property) that might apply to you!

Find the right property for you

• Look at what facilities are in the area that will attract tenants. Think schools, transport, shopping, and medical centres.
• Consider any potential costs that may be required to update an older property.
• Ensure you fix any issues in the property before letting it to tenants.
• Check out how many other properties are for rent in the area – lots of options may reduce your potential rental income.

Do the sums

Before you start hunting for the perfect investor opportunity, you’ll need to know how much you can borrow.

Use our repayments calculator to work out what you can afford and estimate how much your mortgage repayments might be. Or you can let us do the work for you, using our handy pre-qualification tool. In minutes, we’ll estimate your borrowing costs, including stamp duty and Lenders Mortgage Insurance (LMI).

Not sold on investment properties?

There are lots of ways to get your money to work harder for you. The right type of investment for you will depend on factors like timeframes, risk appetite and what you’re ultimately aiming to achieve.

Other options you might like to consider include:

Share trading

Managed Funds

Margin lending

Boosting your superannuation

Consider a financial planner

If you’re weighing up the options and not sure what’s the best strategy for you, it could be time to reach out to a financial planner.

Financial planning is about helping you plan for your short-term and long-term future – whatever that means for you – and with tailored advice appropriate to your specific circumstances.

ANY ADVICE PROVIDED IN THIS ARTICLE IS OF A GENERAL NATURE ONLY AND DOES NOT TAKE INTO ACCOUNT YOUR PERSONAL NEEDS, OBJECTIVES AND FINANCIAL CIRCUMSTANCES. YOU SHOULD CONSIDER WHETHER IT IS APPROPRIATE FOR YOUR SITUATION. PLEASE READ THE APPLICABLE PRODUCT DISCLOSURE STATEMENT(S) ON OUR WEBSITE BEFORE ACQUIRING ANY PRODUCT.