What You Need to Know When Buying an Investment Property

Looking at buying an investment property? There are several things you will need to think about before you make any decisions.


Some Benefits of Investing in Property

 Potential to generate capital growth – increase in the value of your property over time

 Potential to generate rental income and yield – annual rental income less any costs divided by the purchase price of the property

 Gain potential tax advantages associated with negative gearing – with negative gearing you can deduct the costs of owning your investment property from your overall income, reducing your tax bill.


Points to consider:

 Buy a property that fits your strategy, e.g. do you want to negatively gear your investment property?

 Understand all the expenses including, stamp duty, strata levies, council and water rates, real estate commission.

 Consider getting Landlord home and contents insurance  to cover you if the unexpected happens.

 Plan – give your tenants a suitable length of lease and make sure you can cover repayments if the property is unrented for a period of time.

 Choose a loan that suits you and consider an interest only option as it will lower repayments and increase your cash flow.

 Keep up to date on the latest property trends.


by Simon Tworek

Simon is a Financial Adviser at Insight Wealth Planning. He has an advanced diploma and masters in Financial Planning and has a strong technical background.


The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.