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Finding the right investment property

Looking for an investment property is a financial decision, so it’s important to think like an investor and choose a property with features that will appeal to the type of tenant you want to attract.

Here are some of the key things to consider when choosing an investment property:

What type of property do you want to buy? Depending on your budget and investment goals, you may be looking to buy a house, unit, holiday rental.  You’ll also need to consider whether you’ll buy off the plan or purchase an existing property.

The type of property you buy will help determine the level of rent you receive and may involve different upfront and ongoing costs.

This is one of the most important factors when choosing an investment property. You should be confident that the property will increase in value over time and provide you with healthy rental returns. Factors that can influence this are proximity to public transport, healthcare, food and retail facilities, childcare, education and other amenities.

When doing your research, look at other properties in the area to understand the suburb including sales prices and rental prices in the area. You can get this information in a customised Property Report, by visiting a lender in branch, or by downloading our Property Guide app and Home Buyers Index to help you assess the market.

Many first-time property investors look at how the property has performed over the past year or two, but for a long-term investment you should be looking at results over the past 10-20 years as well as projected population growth for the area where you’re looking to buy.

Consider what developments are proposed for the area and any state government plans that may affect the value of your property.

If you’re looking to receive a regular rental income on your investment property, you’ll need to make sure you maintain good occupancy rates by offering a well-priced property with all the features that tenants look for in a home.

Look for features that are in always in demand, such as an internal laundry, balcony, second bathroom, car parking or garage to maximise your rental income. Keep an eye out for damage or any renovations that may be necessary, as well as opportunities to add value to the property. Sometimes, small renovations or a fresh coat of paint can get you higher rental returns.

Get conditionally pre-approved

Get conditionally pre-approved so you know how much you have to spend before you start looking for an investment property.

Talk to us

Ready to apply or you would like to discuss your home loan needs?

Important information

Applications for finance are subject to the Bank’s normal credit approval. Full terms and conditions will be included in the loan offer. Fees and charges are payable. Provided the details initially agreed upon do not change, a Home Seeker loan approval guarantees the amount you can borrow, but not your interest rate. If you do not find a property and accept our formal loan offer within 90 days of the conditional pre-approval date, we will need to obtain from you updated financials and confirm that the loan still meets your needs and financial objectives.