Steps for buying an investment property

Step 1

Understand the process of buying an investment property

Buying an investment property is a little different than buying a home to live in. Not only will you be looking at a house from a rental income perspective, you’ll also need to take precautions to protect your investment. Here are some questions to ask on what to consider so you’re equipped for your next purchase.

Prepare before you purchase

Understand the costs involved in buying a home and see if you can tap into equity to help with the purchase. Look at your finances or chat to a financial specialist to decide if buying an investment property is the right financial move for you.

Pick the perfect place

Make a checklist of key inclusions you’d like in an investment property. This could be land size, location, close amenities etc. There’s hidden treasures throughout Queensland but it may take some time to find the ideal investment. Be patient and remember to get a building and pest inspection if you find a potential property.

Know your numbers

Find out how much you can borrow and what you’ll pay each month with an online borrowing power calculator. It’s a good idea to factor in stamp duty, conveyancing fees and the cost of building and pest inspections. These extra costs when buying a home can add up so make a budget for them early on.

Learn about loans

Have a look at different banks and find a home loan package that works for your life in Queensland. Download the home loan application checklist. You’ll usually be able to start the process online and complete the application after chatting to a lending specialist.

Protect your property

A reasonable chunk of money has gone into your property so it’s worth protecting your nest egg. Consider home and contents insurance to cover your investment, fixtures and fittings, and life and income protection for extra financial support.

Step 2

Costs of buying an investment property

Whether you’re a property pro or you’re taking your first step on the ladder, it’s good to understand what extras you could end up paying.

  • Lenders Mortgage Insurance
  • Lending fees
  • Moving costs
  • Stamp duty or transfer duty
  • Legal and conveyancing fees
  • Building and pest inspection
  • Utilities and connections
  • Home and contents insurance

Home buying tip!

Put your emotions aside when investing in property. Property investments are all about gaining financially through rental income, capital growth, and negative gearing tax benefits. Consider the return on investment, rather than if you’d like to live in the house yourself.

Step 3

Work out how much you can borrow

Be prepared for your new purchase by knowing how much you can borrow and what you’ll be paying each month.

Step 4

Get your home loan

Once you’ve worked out the numbers it’s time to find a loan that’ll suit your investment. We know finding the right loan can be confusing. That’s why at RACQ Bank we’re always here to offer guidance along the way. We’ll explain the home loan process and help you from beginning to end.

Compare all home loans

Pre-approved home loan

It's smart to secure pre-approval. It's free, valid for up to three months and gives you plenty of time and confidence to search for your best investment property.

Get pre-approval and be ready to buy your investment property.

Step 5

Make the most of your investment with your RACQ membership 

We’re here to offer more for your investment so you can get more out of life in Queensland. At RACQ Bank we’re committed to the same high level of service and trusted advice you’ve come to expect. With an RACQ Bank Home Loan you’ll not only benefit with low interest rate and fees, you’ll also save across our full suite of RACQ products and services.

  • Low rates and fees with a range of loans to suit you.
  • Dedicated lending specialists and access to mobile lenders.
  • Generous member discounts across insurance, home services and more.
  • Access to our bank bundles to save you more.
  • Queensland-based 24/7 call-centre and a dedicated network of branches.