Investment Essentials Guide

For new and experienced investors building long-term wealth.

1. Define Your Investment Strategy

Before choosing a property, be clear on your goal:
• Capital growth (value increases over time)
• Rental income (ongoing cash flow)
• Or a balanced strategy combining both

Each strategy influences location, property type, and loan structure.

2. Know How Investment Loans Work

Investment lending differs from owner-occupied loans.

Lenders may require:
• A larger deposit
• Higher interest rates
• Evidence of rental income and long-term serviceability

3. Choose the Right Loan Structure

Selecting the right loan setup can maximise your return.

Common options:
• Interest-only loans (lower repayments, popular for investors)
• Principal & Interest (builds equity faster)
• Offset accounts or redraw
• Ownership structure: individual, company, or trust

Your accountant or mortgage broker can guide you on tax benefits and structure.

4. Assess Investment Potential

A strong investment property should demonstrate:
• Healthy rental yield
• Low vacancy rate
• Strong suburb growth trends
• Local infrastructure upgrades
• Consistent tenant demand

5. Understand Risks & Plan Ahead

Investment success requires risk awareness:
• Interest rate movements
• Rental vacancies
• Unexpected repairs and holding costs
• Changing market conditions
• Tax rule changes

A solid buffer and professional advice help protect your investment.