Property Investors

Advantages of property investing

The benefits of investment properties varies depending on the type of property you purchase and what you do with the investment. Some of the most common advantage of investment properties are:

  • Capital growth
  • Rental income
  • Tax benefits with negative gearing & depreciation
  • High demand for rental housing
  • You can add value to your asset with renovations and small improvements
  • Hedge against inflation
  • Property is generally considered a more stable investment than stocks & shares

    Have one of our team contact you to discuss your Investment Loan

    The process of investing in property

    The three elements required for successful property investing are planning, research and strategy. An investment property is one of the biggest financial commitments you will ever make and to achieve the best results, you need to take the time to get good advice and have a solid strategy before you act.

    Step 1 - Develop a strategy

    Having clear investment goals

    There are two types of income generated from investment properties, the first is rental income (yield) and the second is the increase in property value over a period of time (capital gains). You need to decide if your investment is a long term strategy that will give you a high capital gain over a number of years or if you are looking to earn income now from a high rental yield.

    Understanding positive & negative gearing

    Negative gearing is where the cost of owning a rental property is greater than the income earned from the property each year. This creates a taxable loss, which can be offset against other income such as your salary. Positive gearing is where an investment property earns more in rental income each year than it costs to own the property. As this profit is taxable, you will need to set funds aside to cover the tax you will be required to pay on your investment each year.

    Establishing your budget

    Developing a clear budget prior to purchasing an investment property is essential. The costs associated with an investment property are different to the costs of purchasing your own home. Click here to see a list of the costs of purchasing a property. You need to consider there will most likely be some periods of time when the property is not tenanted so you will need to ensure you can cover the full cost of your repayments, repairs and maintenance without receiving a rental income during these periods.

    A lender will look at the following factors when assessing an investment loan application;

    Your Income
    Your income is the most important factor that a lender will consider when determining how much you can borrow on an investment home loan. You’ll need to be able to cover the repayments on your loan for periods when the property is unoccupied. If you are negative gearing (this means the costs of the investment are higher than the amount of rent you receive) you must be able to afford the balance of those costs.

    Any equity you have in an existing property can be taken into consideration when calculating how much you can borrow on an investment loan.

    Repayment History
    Your repayment history on home loans, personal loans and other debts will be taken into consideration when you apply for an investment home loan.

    Rental Income Potential
    With investment loans, your capacity to borrow can vary dramatically from lender to lender. Some lenders will use 100% of the proposed or existing rental income in assessing your borrowing power, where others will use 60% to 80% of the rental income.

    Understanding taxation on investment properties

    Investing in property offers many potential tax benefits, such as expenses associated with any investment property that is tenanted or available for rent as well as interest paid on your investment property loan.

    It’s essential to get professional tax advice specific to your circumstances prior to making an investment. The cost of your tax advice and having your tax returns professionally prepared for an investment property is tax deductible.

    The following expenses can normally be claimed on tax for your investment property:
    Real Estate advertising for tenants

    Property management fees

    Accounting fees

    Borrowing costs ie: loan establishment & registrations fees as well as valuation fees

    Interest payments and ongoing loan fees

    Stationery, phone costs, book keeping fees

    Travel relating to the property

    Council rates, body corporate fees, land tax and strata fees

    Property maintenance & repairs

    Insurance premiums

    Pest control, cleaning and gardening

    Utilities that are paid by you ie: electricity, gas and water

    Depreciation of both the property and contents such as fridges, stoves & furniture

    Step 2 - Find the right property

    Think like an investor not a home owner

    Choosing an investment property needs to be a financial decision, not an emotional one. It’s imperative to think like an investor and select a property that will suit your financial strategy. Rental yield, capital growth and a property that appeals to your target tenant need to be at the forefront of your mind.

    If you are not confident in making the right choice on an investment property, you can use the services of a buyers agent who is a property investment specialist. The team at Assured Lending can put you in touch with local buyers agents.

    Location, location, location

    Location is the key to investment property success. You need to research potential suburbs looking at things like, population growth, local housing prices, rental yields, rental demand, planned developments for the area, transport links, proximity to lifestyle features and business districts, schools, employment and suburb growth potential. We have some free reports to help you when researching locations. Click on the links below to get your report now.

    Herron Todd White Month in Review

    Detailed Suburb Profile Report for any Suburb in Australia

    Features of an investment property

    The type of property you purchase for an investment will obviously depend on your budget and investment strategy. You could consider a  house, unit, duplex, holiday rental or defence force housing.  You’ll also need to look at advantages and disadvantages of buying an existing property or buying off the plan. The type of property you buy will determine the level of rent you receive and may involve different upfront and ongoing costs.

    Think about the tenant you are targeting and research the demographic of people currently living in the suburb so you can select a property that suits their needs.  Have a clear checklist of features that you want the property to have, things like;

    number and size of bedrooms

    entertaining areas

    gardens and external space



    proximity to local shops, entertainment, schools and transport


    quality of neighbouring houses

    Click here to download a printable Property Viewing Checklist

    If you find a property you believe may be a good investment, Assured Lending would be happy to provide a free online property report if it is an existing residential property located in Australia. Click here to order your free report today which will include an estimated valuation on the property, previous sales history, location highlights, comparative sales details for similar properties that have been sold in the same area, median property prices for the suburb, properties sold per year in the suburb, capital growth and more.

    Step 3 - Get the right loan

    Find a loan and a lender that best suits your needs

    Having an investment property home loan with the lowest interest rates and fees and the flexibility to suit your needs is just as important as selecting the right investment property. It is essential to shop around and make sure you are getting the best deal possible on what is likely to be the biggest financial commitment you will ever make.

    This is where the financial experts at Assured Lending Mortgage Brokers come in. We will compare the loan products of over 30 of Australia’s leading lenders, to find the investment loan that is right for you.

    Mortgage Broker Northern beaches Lenders

    Property Investing Tools

    Get my free property valuation report

    Would you like a free report on an investment property you are considering purchasing? We will email you a free property valuation report which includes an estimated valuation on the property, previous sales history, location highlights, comparative sales details for similar properties that have been sold in the same area, median property prices for the suburb, properties sold per year in the suburb, capital growth and more.

    Get my free suburb profile report

    Order your free suburb profile report to see how any Australian suburb is performing in the property market. Make informed choices on future property purchases with a detailed knowledge of the local area. This report features a suburb profile, median monthly sale prices, total houses for sale, total rental properties, land for sale, median capital growth, housing structure, occupancy, resident statistics, average household income and more.

    Get my free property month in review report

    The free Herron Todd White Month in Review report identifies the latest movements and trends for property markets across Australia

    Get my free property viewing checklist

    Instantly download and print this property viewing checklist to make sure you consider all aspects of a potential property during a viewing.

    Calculate how much my repayments might be

    Get an estimate on how much your home loan repayments might be on an investment property so you can compare repayments to rental yield.

    Calculate the stamp duty on an investment

    Calculate what the stamp duty will be for a property you are considering purchasing. Stamp duty is a tax you will be required to pay when purchasing land or property and  is calculated on the value of your investment. Stamp duty varies between the different states in Australia.

    What our customers say

    “Quintin from Assured Lending Mortgage Brokers has helped me grow my property investment portfolio three times over the last six years. Most recently he got me a new investment loan at an interest rate that was lower than the lenders advertised rate.  The loan was approved for well over 100% of the property value by using my existing properties as well as the new property as security.  I was a bit worried, being close to retirement age, but it turned out to be not a problem. I would happily recommend Assured Lending to anybody wanting finance.”  John Muller, Yagoona, NSW.

    See more reviews from other customers



    How we can help with an investment loan

    • We’ll show you how to use the equity in your home to purchase an investment property
    • We’ll help you maximise your borrowing capacity
    • We’ll liaise with your accountant to give you the best tax effective strategy
    • We’ll find the most suitable loan options for you from Australia’s leading lenders
    • We’ll complete all the paperwork and liaise with the lender on your behalf

    Whether you are seeking to unlock the equity in an existing property or have savings to put towards your purchase, we will show you how much you can borrow, explain the loan features that maximise savings and tax benefits on investment property loans and liaise with your accountant to ensure that you have the structure in place to minimise your taxable income. We are able to provide you with free market data reports, suburb analysis reports and residential property valuation reports and can connect you with a buyers agent to ensure that the property that you are planning to buy is going to have the best chance of meeting your wealth creation aspirations. With investment loans, your capacity to borrow can vary dramatically from lender to lender as some will use all of the proposed or existing rental income in assessing your borrowing power, where others will use 60% to 80% of the rental income. You will also find that some lenders will put a buffer on top of existing loan repayments and then there are some that don’t. We have assisted many customers who have walked into their bank only to be told that they can’t demonstrate affordability; Our knowledge and expertise of which lenders are the right fit for your specific circumstances gives you a much higher chance of get your loan approved.

    Have one of our team contact you

    for advice on your investment loan

    All advice and reports provided by the Assured Lending team are completely cost and obligation free.

    *Lender fees & charges may apply.