Couple standing in from of home considering it as an investment home

Top tips for buying an investment property

Purchasing an investment property is a popular long term investment that has enabled many Australians significant financial growth.

Unlike other investments, property is simple and easy to understand, it may provide regular income, offers the potential to increase in value and can be less volatile than other investments.

Like all investments it is not without risks however.

To help you sort the gems from the gravel, here’s what to consider when finding your investment property.

  1. Borrowing Power - Use Home Lending Calculators to work out how much you could borrow, and what your repayments might be. This enables effective and realistic budgeting from the outset.
  2. Market Trends – Keep across trends in the property market – from regions and property types with increased demand, through to fluctuations in property prices – to optimise the wealth potential of your investment property.
  3. Property Condition – Pay close attention to the structure of the property and find out how adverse weather conditions impact it. It’s often a good idea to get a second opinion from a professional. Doing so gives you greater bargaining power, an idea of renovation costs and minimises the possibility of unexpected surprises.
  4. Community and Amenities – Research what spaces, transport links, shops, restaurants and cafes, and schools surround your investment property. These are all factors impacting the wealth potential of your investment property, and its appeal to would-be renters.
  5.  Local Council – Find out about local council requirements, services, development plans, and fees. This allows you to decide what – if any – changes you can make to the property, along with any upcoming work scheduled in the region.
  6. Property Management – Decide how you will manage your investment property. If you decide to undertake it yourself, ensure you have the necessary accreditation, paperwork and processes in place. Alternatively, engage a local real estate agent who can advise on the process, costs and earning potential of your investment property.

Regional Australia Bank provides a range of options to help you buy an investment property, reap the potential benefits and assist you in realising your lifestyle goals.

Basic and Fixed Rate home loans offer market-leading rates and repayment options, helping you stay on top of your budgeting. Refinancing your existing loans may be a an option for you to consolidate debts and simplify payments, while allowing you to take advantage of discounted interest rates and extra features. 

Don’t forget Landlord Insurance either. Regional Australia Bank have partnered with CGU, an insurance partner with over 160 years of experience. Landlord insurance covers your property for loss or damage and you can choose to include optional rental income protection for any loss of rental income for a certain period.

Book an appointment with one of Regional Australia Bank’s home loan specialists today to discuss how we can help you on your journey to buying an investment property.

In the meantime, take a look at ASIC's Money Smart for more information about buying and managing an investment property.

Important Information

This information is not to be considered as financial or legal advice. Please ensure that you speak to your accountant or solicitor in relation to your situation.