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Invest in your future
Whether you’re growing your portfolio or taking a first step on the property ladder, we can help you with your investment property purchase. Here are some questions you need to ask before you start.

How much can I borrow?

Like any property purchase, buying an investment property requires research and planning. Your earnings and financial commitments, like the mortgage on your home, need to be taken into consideration when calculating how much you can afford to invest.

When calculating your borrowing power, also factor in if you’ll be able to service the loan if the property is untenanted and you’re not earning any rent.

Where should I buy?

Do your research

Research the area where you’re looking to invest. Is it close to public transport, local schools, shops, and hospitals? Contact the local council to find out about planned developments and projects in the area.

Talk to local property managers

If you have an area in mind, speak to local property managers. Get an understanding of the rental returns for the type of property you’re looking to buy, the demand and supply, and vacancy rates.

    How much can I borrow?
    What will my repayments be?

    How much will I need upfront?

    As well as your repayments, investment properties come with other considerations and costs. When working out your investment strategy, weigh up the short and long-term costs.

    Some common ones are:

    • Lenders' Mortgage Insurance

      If you want to borrow more than 80% of the current market value of a property, chances are you’ll need Lenders Mortgage Insurance (LMI). This can vary for investment loans, so talk to your lender.

    • Loan establishment fee
    • Property management and estate agent fees
    • Stamp duty

      Stamp duty is a state government charge or tax. The amount is based on the purchase price of the property and is different in every state and territory. We can help you work this out.

    • Strata fees
    • Legal and conveyancing fees
    • Building and pest inspection

      Before you buy, make sure you get a building and pest inspection to check the property is structurally sound and free of pests like termites. Although not compulsory, it’s highly recommended this is done before contracts are signed to avoid any nasty surprises down the line.

    • Landlord insurance
    • Building insurance
    • Maintenance
    Upfront costs calculator

    Can I access the equity in my current property?

    If you already own a property, you may be able to use the equity as a deposit to purchase an investment property. Equity is the current market value of your property minus the amount you still owe on your loan. You’ll also need to work out the Loan to Valuation Ratio (LVR) as you won’t be able to access all the equity in your property. We can help you work this out when we speak to you.

    Should I speak to a financial adviser?

    Like any investment decision, buying an investment property comes with a level of risk. Before you decide, it’s a good idea to speak to a financial adviser. They’ll be able to advise on how to structure your finances, and the implications of positive and negative gearing, depreciation, and capital gains tax.

    Which is the best loan for me?

    When reviewing loans for investment purposes, you may require certain features and added flexibility.

    Below are some options to consider for investment loans:

    Interest only

    If you want to keep your repayments to a minimum, an interest-only option may work best for you. Your loan principal will not be reduced but the equity in your property might go up if house prices rise in the long term. Keep in mind, interest-only repayments are usually payable monthly.

    Fixed rate loans

    A fixed rate loan gives you more certainty because you know exactly what your repayments are for a set period. However, if you change financial institutions, sell your home, or pay off your loan within the period, you may have to pay an early payout cost.

    Variable rate loans

    A variable rate loan gives you more flexibility but leaves you open to changes in interest rates. You can usually access more features such as the ability to make extra repayments at no cost or the flexibility to pay off or move your home loan without penalty or break cost (but there may be a discharge fee).

    Split loans

    You can choose to split your loan and place a portion on a fixed rate and a portion on a variable rate. This allows you to manage some of the risk of an interest rate rise with the fixed rate loan, while still having the flexibility of the variable rate loan.

    Choose your own home loan
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    Important information

    Please note that this is only intended as a general guide in relation to issues you may want to consider when buying your first home. It is not intended to be an exhaustive list of all relevant issues and you should take into account your own particular circumstances, and obtain independent expert advice where needed, before proceeding. Rates and savings quoted are indicative only for illustrative purposes.

    Great Southern Bank, a business name of Credit Union Australia Ltd ABN 44 087 650 959, AFSL and Australian Credit Licence 238317. Lending criteria, limits, conditions and fees apply. Applications are subject to credit approval.

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    Applying for pre-approval allows you to know the maximum amount you can borrow while you look for a property.

    Pre-approval means that a lender has agreed to lend you an amount of money in-principle, but the loan hasn't been proceeded to full or final approval.

    While pre-approval is not a fully approved loan it can help you narrow your search, negotiate, and make an offer with certainty and confidence.

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    The Australian Government has introduced initiatives to support eligible Australians to build or purchase a new home sooner: the First Home Guarantee and the Family Home Guarantee.

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