Guide to 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 things 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 check list 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. Factor in stamp duty, conveyancing fees, and the cost of building and pest inspections. These extra costs 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.

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

• Lenders Mortgage Insurance
• Lending fees
• Stamp duty or transfer duty
• Legal and conveyancing fees
• Building and pest inspection
• Utilities and connections
• Home 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.

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.

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. Download key facts sheet.

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