Planning your investment

As a first time investor or someone looking to expand your portfolio, it's important to have a clear plan and investment strategy in place. Having a sense of what you want to achieve, and all the challenges involved, will go a long way to making your investment a success and building your wealth. We can help you maximise your investments, with a range of home loan options plus advice on choosing property, information on gearing and tax, and insurance services. 

Building your wealth

Investing in property can be a good way to build your wealth. Find information on the different investment types and building your portfolio.

Protecting your wealth

Once you've purchased a property and rented it out you’ll want to protect your investment and it’s earning potential to maximise your returns.

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Gearing and taxation

Learn about gearing to build your wealth and how an investment home loan could make you eligible for a range of tax benefits.

Refinancing to invest

If you're considering refinancing to invest, you can find all the basics to get started, plus proven strategies to maximise your return.

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Benefits of investing in property

Buying an investment property could build your personal wealth in the following ways:

• If the market value of the property increases.
• When rental returns exceed the repayments you're making.
• Through tax benefits.

There are also some advantages to consider if you're looking at an investment property over other investment types. These can include:

• It's a fairly secure long-term investment.
• It's a solid, visible asset.
• It can pay itself off when income from rent exceeds your repayments.
• Tax benefits, like deductions, you may be eligible for.

 

Explore the market with Investorville

You can experience risk-free real estate with our property investment simulator. Learn about market conditions, capital gains and property management, and experiment with your equity to see how you can get ahead.

• Start investing with Investorville

Understanding risk

However, as with any investment, there are a variety of risks and expenses to consider when buying an investment property. Before investing, consider the following points:

• On top of an investment home loan, there are a variety of purchase costs, stamp duty, legal fees, property inspection fees and loan establishment fees.
• There can be significant holding costs, including maintenance, council and water rates, insurance and body corporate (strata) fees (for units or apartments).
• Income from rent may not meet your expectations.
• There may be a gap between tenants leaving and new tenants moving in.
• The value of your investment property could decline.
• Selling can take time, a problem if you need fast access to your money.
• You might earn higher returns with a different type of investment

 

Working out risk vs. return

Every type of investment offers a certain level of return, but also a certain level of risk. As a general rule, the higher the potential return, the higher the risk involved. Property investment can be considered as a reasonably secure long-term investment.

To see how investing in property compares to other investments, refer to our risk vs. return chart.

 

Finding an investment property

Use our free Property Value Guide to find out median property values, recent sale prices and demographic information for the suburbs you’re looking to invest in. Get your free Property Value Guide.

 

Building your equity

Building equity in your investment home loan gives you the opportunity to invest further, expand your portfolio and build your wealth. You can build equity by:

• Increasing the value of the property, through renovating or general increases in market value.
• Expanding your portfolio by investing in additional property.
• Paying down your loan.

Structure the investment home loan type you choose to suit your needs. Pay down the loan as quickly as possible to build your equity, or arrange your repayments for bigger tax benefits.

Find out more about building equity.

 

If you've weighed up all the pros and cons and decided that investing in property is right for you, there are just a few more things to consider. Find out how much you can borrow, your ability to make repayments plus advice on common deductions and depreciation.

Find out more about investing in a property.

 

Help with your investment home loan

For more help on choosing the right investment home loan, we have a range of free online tools and calculators for you to use. Or, if you prefer a more personal approach, contact one of our Home Loan Specialists to arrange a time to chat.

• Important information
  Applications for finance are subject to the Bank’s normal credit approval. Full terms and conditions are included in the Loan Offer. Bank fees and charges are payable.