Guide to buying an investment property

Steps for buying an investment property

Whether you’re a first-time investor or want to build your portfolio, we’re here to help you purchase your next investment property.

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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 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.
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 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.
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.
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.

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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Need help or would like to know more? RACQ Bank offers many convenient ways for you to get in touch with us. 

Your RACQ Bank Home Loan comes with RACQ membership^~~

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Things to note

Banking and loan products issued by Members Banking Group Limited ABN 83 087 651 054 AFSL/Australian credit licence 241195 trading as RACQ Bank. Terms, conditions, fees, charges and lending policies apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the disclosure documents for your selected product or service, including the Financial Services Guide and the Terms and Conditions, and consider if appropriate for you before deciding.

Except for RACQ Bank, any RACQ entity referred to on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). That entity’s obligations do not represent deposits or other liabilities of RACQ Bank. RACQ Bank does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.

^~~ Terms and conditions apply to all offers. View the individual offer for full details. Offer is subject to availability and may be withdrawn at any time without notice.

* Home Bundle Terms and Conditions

Subject to the further terms and conditions below, the Home Bundle gives eligible RACQ Bank customers a 15% discount off combined Home and Contents Insurance, Home Building Insurance or Contents Insurance for the life of any eligible home loan.
The 15% discount on Home and Contents Insurance, Home Building Insurance or Contents Insurance available under the Home Bundle offer will only be applicable for insurance that is to cover the asset which is subject of the eligible home loan taken out under this offer only.
Subsequent to the initial policy being taken out, if the member makes any policy changes which require an additional premium, that premium will need to be paid by the member.
The Home Bundle promotional offer is valid for new RACQ Bank home loan customers only. Offer is available until further notice, subject to change without notice and may be withdrawn at any time. Acceptance of the offer is optional.
Valid for Investment or Owner Occupier, residentially secured home lending products only. Not available for businesses or companies. Lending terms, conditions, fees, charges and lending criteria apply. View our Loan rate schedule and fee schedule for a full list of RACQ Bank’s home loan rates, fees and charges.
Please refer to the Things to note section for information on RACQ Bank Home Loans which are eligible for the Home Bundle promotional offer.
The Home Bundle Offer is not available to directors, officers, management, employees and other staff (and the immediate families of directors, officers, management, employees and other staff).
For refinanced home loans from other banks, Home and Contents Insurance policies will be created at or after loan is unconditionally approved.
For property purchases, policies are to be created once purchase contract is signed or at loan submission, however Home Loan plus Home and Contents Insurance discounts are conditional on the home loan funding within 90 days of the date of the submitted application.
Policyholders who already hold at least one insurance policy issued by RACQ Insurance Limited, may be eligible for a range of discounts, for the full breakdown of discounts please visit racq.com. After the deduction of any available discounts, a further discount of 15% will be deducted to calculate the final premium. The calculated premium may then have additional taxes and charges applied. The Home Bundle 15% discount offer is not available in conjunction with the online application discount for combined Home and Contents Insurance, Home Building Insurance or Contents Insurance.
Insurance products (excluding Travel Insurance) are issued by RACQ Insurance Limited ABN 50 009 704 152 (RACQ). Conditions, limits and exclusions apply. This is general advice only and may not be right for you. This information does not take your personal objectives, circumstances or needs into account. Read the PDS, and any applicable Supplementary PDS before making a purchase decision on this product. You can also access our Target Market Determinations on this website.
Refer to the Things to note section of this page for RACQ Bank Home Loan disclaimers including the comparison rate warning.