Buying an Investment Property
From planning for your retirement, to building your wealth or getting onto the property ladder, there's many reasons why investing in property is a good idea. Whether you're looking to buy your first investment property or you've purchased one before, we've got a range of investment property loans to suit your needs.
How to apply
Home loan calculators and tools
Investing in Property tips
- Get professional financial advice. This will give you the financial confidence you need to avoid any costly mistakes
- Work out your income and expenses. Make sure you’ve considered how you can afford to cover your expenses and make your repayments if your investment property doesn't rent short term and long term
- Where to buy. Look out for high growth areas and properties close to public transport, schools and local amenities.
- Choose the right property. Unlike the house that you're living in, looking for a property with low maintenance and upkeep will help you save on ongoing maintenance fees. Also weigh up the costs of any repairs that need to be made to the property before you buy.
- Choose the right investment property loan. Whether you intend to hold on to your investment property short term or long term, make sure the loan type you choose fits in with your investment loan strategy
Step 1: Determine how much you can borrow
As an investor, typically your financial situation will be a little more complex. It’s probably best you work with your bank and financial advisor to fully understand your borrowing power and the right investment property loans for you.
For an estimate on your borrowing power, work out how much you can borrow with our Borrowing Power Calculator. Our Loan Repayments Calculator and Budget Planner will help you work out how much you can put towards your investment and afford on an ongoing basis, in the event your investment property is not tenanted for a period of time.
As you may already know from buying other property, there are additional expenses that you’ll need to cover. Some of the main costs are:
- Stamp Duty - use our Stamp Duty Calculator to work out how much stamp duty will be payable on the purchase of the investment property
- Lenders Mortgage Insurance - required if you are borrowing more than 80% of the property value
- Legal fees - your solicitor will complete all the necessary conveyancing and searches on your property
- Building & Pest Inspection - a comprehensive report on the structure and condition of your property
- Property valuation - an independent valuation of your property
Step 2: Finding your investment property
To help you research house prices and make an informed decision about a property, the BOQ Property App (powered by RP Data) will provide you with useful information on the last sale price, estimated price range, other sales in the area and more. All you need to do is enter the property's address and you'll receive a free property report by email**.
Step 3: Choosing your investment property loan
Choosing the right investment property loan will help you make the most of your investment. Our home loans have a range of useful features to add flexibility to your home loan, from making interest only repayments to having a low interest rate. Here's the features you should look out for as a property investor:
- Variable or fixed interest - choose between the flexibility of a variable rate or the certainty of fixed loan repayments, or combine both options
- Interest only repayments - a great way to reduce your repayments and ensure they can be claimed as a tax deduction
- Line of credit facility - useful for having funds available when you need it to make maintenance repairs and other expenses that may come up
- Redraw facility - the ability to draw on your funds in case you need it
- Flexible repayments - schedule weekly, fortnightly or monthly repayments in line with your rental income
Popular home loans for property investors
Take the guesswork out of choosing your home loan with our most popular investment property loans:
View more loans or compare our home loans.
Step 4: Buying your investment property
Once you've found the perfect investment property and you've agreed on a price with the seller, it's time to apply for a home loan. Why not have a chat to one of our home loan experts today to start the process? Typically applying for an investment home loan will entail:
How to apply