Buying an investment property

Buying an investment property

Last updated: 24 October 2019

Are you thinking of buying an investment property? While it can be a way to get your foot in the property market to help build your wealth and grow your assets, it also represents a big financial commitment and carries a certain degree of risk.

If this is your first time buying an investment property, this guide will take you through the basics of what you need to know about investing to help you determine whether property investment is the right move for you.


Know your investment goals

One of the most common reasons people invest in real estate is to build long-term wealth. However, investing in a property isn’t for everyone, that’s why it’s important to first figure out why you’re investing and whether it suits your circumstances.

Haven’t checked your credit score yet? Find out where you stand before you apply for a loan.

Get my credit score now


Work out your budget & the costs

When purchasing a property for investment purposes, a significant amount of money will be required upfront.  This can include stamp duty, legal fees, building and pest inspections and loan set up costs. You’ll also need to consider any ongoing expenses, such as maintenance costs, council and water rates, insurances, and potentially property management fees.

Savvy Tip: Use our mortgage calculator to find out how much you can borrow to help you work out the type and size of investment home loan you can afford to buy your investment property.


Research the property market

Property values can fluctuate over time, so understanding the market dynamics is important. Remember to seek professional advice and take the time to do your own research, so you’re not rushed into making big property investment decisions.


Find the right property to invest in

Investing in a property is about capital growth so finding a reliable property that will increase in value is key. It’s also important to remember to not take your own needs into consideration when hunting for an investment property, but to think about what features will attract potential tenants.

Savvy Tip: Research areas that deliver high and consistent rental income returns and look at neighbourhood characteristics such as the proximity to public transport and shops. You can also go a step further to find out what future infrastructure development the local council has planned that will potentially add value to your property.


Choose the right investment home loan

Finding an investment home loan that not only has a low interest rate but also comes with competitive features is key. Work out different scenarios and the potential costs associated with different loan types to help you decide which loan option is right for you.

Savvy Tip: If you’re unsure of the process of applying for an investment mortgage, you can consider talking to an expert. Request a free appointment with an eChoice mortgage expert today.


Ready to start comparing? We’ve listed a few investment home loans to help get you started. You can also visit our home loan comparison service for more investor loan options.



Want to learn more about home loans? Head over to the Learning Hub and get started today.

Learn about home loans


Advertiser Disclosure

*Comparison rate is calculated based on a secured loan of $150,000 over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different fees, terms, or a different loan amount might result in a different comparison rate.

#The maximum loan to value ratio (LVR) listed on the site may, or may not include the lender mortgage insurance (LMI) premium and therefore may be different from that published by the lender.

This is an information service only and any information displayed is not to be taken as a recommendation for you to take out a particular product. Where Credit Savvy displays credit products that you may be eligible for, this means that the lender has indicated that applicants must at a minimum meet this credit score as part of the product criteria. Credit Savvy does not take into account your objectives, financial situation or needs when displaying any products on its website.

Products shown are only a selection and not representative of all products in the market. All loan product applications are subject to the provider's credit criteria, approval and terms and conditions. Conditions, fees and charges may apply. Interest rates are subject to change and some products may have lower introductory rates which revert to higher rates after a set period of time. You should consider your own objectives, financial situation and needs, along with the product's terms and conditions, before making a decision to apply for a product. Once you click on a link or apply for a certain product you will be dealing with the provider and not us. We do not accept any liability in respect of any product from any provider.

The 'Sponsored Featured Product' is a paid promotional placement. Credit Savvy receives payment for displaying the products on its website. The display or order of products (including any 'Sponsored Featured Product') is not an indication of product ranking or suitability. Commercial arrangements we enter into with providers (including any payments we receive from them for displaying their products) and other factors may influence which products we display and in what order.

Credit Savvy endeavours to provide accurate information and no responsibility is taken for errors or oversights. The results from any calculations, such as indicative monthly repayments, are estimates only and should be used for general information purposes.

Credit Savvy recommends you seek independent financial advice and obtain your own professional legal and taxation advice before making an investment decision.