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Buying an investment property has a lot of extra perks and it can really help you save a lot of money both now, and in the future. Let us break down some of the basics of buying an investment property in Queensland.

What to consider

Suburb

Check out realestate.com.au to get a suburb snapshot. You can get suburb profiles and see the demand of houses in that area and what they’re selling for. 

Features

Try to find a property type that will suit a range of tenants (singles, couples, young families and retirees).

It’s good to have attractive features like:

  • Second bathroom
  • Garage
  • Shopping precinct and school nearby
  • Accessible public transport
  • Close to schools
Maintenance

Low maintenance properties are easy to keep looking fresh. Try to avoid pools and extensive landscaping. Units are easier to maintain than houses, but remember to consider the body corporate fees. Houses can be a little harder to maintain, however you’ll likely gain more equity if the value of the land increases.

Costs

When you’ve got an investment property you’ll be paying additional costs on owning the property.

 These include up-front costs like:

  • Stamp duty when buying/selling
  • Conveyancing fees
  • Legal fees
  • Title search fees
  • Pest and building inspections

Ongoing fees include:

  • Council and water rates
  • Insurance
  • Body corporate 
  • Land tax
  • Property management
  • Repairs and maintenance

Talking about property 

What’s negative and positive gearing?

You’ve probably heard a lot about positive and negative gearing but what does it all mean? Negative gearing is when you get a loan for a property and the money you earn from the property is less than what you’ll pay. Basically, you’re making a loss on the property which will reduce your taxable income. This is great if you want to reduce the amount of tax you’ll pay.

Positive gearing is when you get a loan for a property and the money you earn from the property is higher than what you’re paying. This is like being paid an income and you’ll be paying tax, just like you would in your job.

Top tips for investment properties

What to look out for:

  • Growing suburb with low vacancy rate

Desirable features like:

  • Second bathroom
  • Shopping and public transport nearby
  • Garage
  • Close to schools
  • Low maintenance property

Consider:

  • Up-front purchase costs and ongoing costs
  • Do you want to manage it yourself or pay a property manager to do it all for you?
  • Rental yield – will you be positive or negative gearing?

If you’re considering buying an investment property, have a chat to one of our lending specialists. We can help you find the right home loan and we’ll walk with you every step of the way. Use some of our online tools so you can see just how much you could borrow or give us a call, on  anytime.

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The information in this article has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in the document is general advice and does not take into account any person’s particular investment objectives, financial situation or needs. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives, financial situations and needs. You should obtain and consider the Product Disclosure Statement or terms and conditions relating to the products mentioned, before deciding whether to acquire any products.

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