What is an Investment Property?
An investment property is a residential or commercial property purchased with the intention of generating income. This could be through rental payments, capital growth over time, or a combination of both. Unlike your primary residence, investment properties are assessed differently by lenders and come with unique benefits and challenges.
Benefits of Property Investment
Property investment may offer several advantages, including:
Rental income: A well-located property may generate consistent rental returns.
Capital growth: Over time, property values may increase, building equity.
Tax benefits: Certain expenses related to the property may be tax-deductible (always speak to your accountant).
Portfolio diversification: Property may complement other investments like shares or superannuation.
Challenges to Consider
While the potential rewards are appealing, property investment also comes with risks and responsibilities:
Higher deposit requirements: Investment loans often require a larger upfront contribution.
Stricter lending criteria: Lenders assess rental income, existing debts, and your overall financial position.
Ongoing costs: Maintenance, insurance, property management fees, and potential vacancy periods can impact cash flow.
Market fluctuations: Property values and rental demand can vary depending on location and economic conditions.
How MAB Brokers Support You
At Mortgage Advice Bureau, we take a personalised approach to investment lending. Here’s how we help:
Understanding your goals: We start by discussing your short- and long-term plans - whether you're aiming for passive income, capital growth, or both.
Assessing your financial position: We help you prepare the right documentation, including income details, existing liabilities, and rental projections.
Comparing lenders: We work with a broad panel of lenders, each with different policies for investment loans. We’ll help you find options that align with your strategy.
Explaining loan structures: From interest-only repayments to offset accounts and cross-collateralisation, we break down the features that could support your investment goals.
Guiding you through the process: We’re here to answer questions, manage paperwork, and make sure you feel confident every step of the way.
Ready to Explore Your Options?
Investing in property can be a powerful way to build wealth, but it’s important to get the right advice and structure from the start. If you're thinking about investing but unsure where to begin, we’re here to help.
Let’s talk about how to make your next investment move with clarity and confidence.
📩 Reach out today for a personalised discussion.