Investment Property Loans Build Your Wealth Portfolio

Capital Growth

Build equity as property values increase over time. Historical data shows Australian property doubles every 7-10 years on average.

Rental Income

Generate passive income from tenants. Rental yields of 3-6% are common across Australian capital cities and regional areas.

Tax Benefits

Claim deductions on interest, property management, repairs, and depreciation. Negative gearing can reduce your taxable income.

Leverage & Equity

Use equity from existing properties to build your portfolio. Leverage allows you to control $500K+ assets with 20% deposit.

Portfolio Diversification

Diversify beyond shares and super. Property provides tangible assets with lower volatility than equities.

Retirement Planning

Build a self-funded retirement through property. Sell or retain for ongoing passive income in retirement years.

• ✓Total property value: $600K
• ✓LVR: 80%
• ✓Estimated rental: $550/week
• ✓LMI: Nil (20% deposit)

• ✓Total property value: $1M
• ✓LVR: 80%
• ✓Estimated rental: $850/week
• ✓Use equity as deposit

• ✓Total property value: $1.75M
• ✓LVR: 80%
• ✓Portfolio approach strategy
• ✓Tax-effective structures

💳 Interest Deductions

100% of loan interest is tax deductible on investment properties. On a $500K loan at 6%, that's $30K/year in deductions.

🏗️ Depreciation

Claim wear and tear on building (2.5% p.a.) and fixtures/fittings. A quantity surveyor report unlocks these deductions.

🔧 Repairs & Maintenance

Immediate deductions for repairs, maintenance, pest control, gardening, and general upkeep costs.

👔 Property Management

Management fees (typically 7-9% of rent), advertising for tenants, lease preparation all fully deductible.

💰 Council & Water Rates

Council rates, water rates, strata fees, and other property-related charges are fully deductible.

🏦 Insurance Premiums

Landlord insurance, building insurance, and contents insurance premiums are all tax deductible.

Key Point: While you're making a paper loss each year, you're building equity through capital growth and debt reduction. The tax benefits reduce your out-of-pocket costs, making it affordable to hold quality assets that appreciate over time.

How much deposit do I need for an investment property?

Most lenders require a minimum 20% deposit to avoid Lenders Mortgage Insurance (LMI). However, some lenders will accept 10% deposit with LMI. If you have equity in your existing home, you can use this instead of cash savings. High-income earners in certain professions may access special low-deposit programs.

Can I buy an investment property before buying my first home?

Yes, absolutely. Many investors start with investment properties to build wealth before purchasing their own home. The advantage is you can claim all tax deductions. The disadvantage is you won't have access to first home buyer grants or stamp duty concessions. We'll help you compare both strategies based on your situation.

What's the difference between investment and owner-occupied loan rates?

Investment loan rates are typically 0.25-0.50% higher than owner-occupied rates. This is because lenders view investment properties as higher risk—if you face financial difficulty, you're more likely to default on an investment loan than your primary residence. However, the tax deductibility of investment loan interest more than offsets this rate difference for most investors.

How do lenders assess rental income?

Most lenders assess rental income at 80% to account for vacancies and management costs. So if your property rents for $600/week ($31,200/year), lenders will only count $24,960 toward your serviceability. Some specialist lenders may assess at 100% for high-demand properties or experienced investors with strong rental history.

Can I use equity to buy an investment property?

Yes, this is one of the most common strategies for building a property portfolio. If your home has increased in value, you can access up to 80% of the equity without selling. For example, if your home is worth $800K with a $400K loan, you have $240K in usable equity ($640K x 80% - $400K loan). We can help you calculate your available equity and structure the loans correctly.

What's better: capital growth or high rental yield?

It depends on your strategy. High-income earners typically prefer capital growth properties (Sydney/Melbourne blue-chip suburbs) because they can afford negative gearing and benefit from long-term appreciation. Lower-income investors or retirees often prefer high-yield properties (regional areas) for positive cash flow. Many successful investors have a mix of both. We'll help you build a balanced portfolio based on your income, goals, and risk tolerance.

How many investment properties can I own?

There's no legal limit, but your borrowing capacity depends on your income, existing debts, and total portfolio value. Most mainstream lenders become conservative after 4-6 properties. However, specialist lenders cater to experienced investors with 10+ properties. Your serviceability is the key constraint—we'll help you maximize your borrowing capacity through the right lender selection and loan structuring.

Should I set up a trust or company for investment properties?

This depends on your situation. Personal names are simplest and offer full negative gearing benefits. Trusts provide asset protection and income distribution flexibility but have setup costs and complexity. Companies have limited negative gearing benefits. For most first-time investors, personal names or joint names work best. For larger portfolios, trusts may make sense. We recommend consulting with an accountant or tax advisor for structure advice, and we'll help you find lenders who work with your chosen structure.

Lender Comparison

We compare 32+ lenders including major banks and specialist lenders who understand investors. Find the best rates and policies for your strategy.

Tax Strategy Advice

Understand depreciation, negative gearing, and loan structure to maximize your tax benefits. We'll connect you with tax specialists if needed.

Serviceability Optimization

We know which lenders assess rental income favorably and have lower living expense benchmarks, maximizing your borrowing capacity.

Portfolio Strategy

Building multiple investment properties? We'll help you structure loans correctly and choose lenders who support portfolio growth.

Interest-Only Specialists

Not all lenders offer interest-only to investors anymore. We know which ones do and can secure 5+ year IO periods for qualified investors.

Fast Pre-Approval

Get pre-approved before you make an offer. Know your exact borrowing capacity and act quickly when you find the right investment.