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Buying an investment property

Purchasing an investment property could be the next step in your journey to financial security, for both first home owners and experienced investors alike. 

Research pays off: Read on for our guide to investment loans, property taxes and other useful information to start growing your wealth.

  

Start growing your wealth.

Planning to invest?

Should I invest in property?

With a significantly longer-term investment horizon, you need to review your financial situation to determine if buying an investment property is right for you. Some reasons for buying might include: 

  • You want to diversify your portfolio beyond stocks or managed funds
  • You have equity in your home, or a significant influx of cash you wish to invest
  • You are looking for a longer-term investment portfolio

What do I need to know before I invest in property?

Unlike buying a home, an investment property requires extra consideration. Some things you need to know: 

  • Your current financial stability (e.g. income, existing loans and expenses)
  • How much equity you’re able to access
  • How concepts like negative gearing, depreciation, stamp duty and tax law affect you
  • Ongoing property management expenses like management, maintenance and body corporate fees
  • The property market in the area you are looking to invest (in particular access to public transport, schools and leisure activities)

Pros and cons of investing in property

Pros: 

  • You can earn rental income from investment properties to offset mortgage repayments
  • You may be eligible for tax breaks like negative gearing
  • Property investment is widely considered a more secure investment item than shares
  • Property is tangible, with real perceived value (providing shelter and accommodation)

Cons: 

  • Rental income may not cover your mortgage repayments, adding to debt
  • Fluctuating interest rates may affect your financial return or ability to pay
  • Up-front costs can be significant 
  • Property takes longer to sell than shorter-term investments.

Understanding the costs

Rental income may cover your mortgage repayments, but there are other fees and costs associated with buying an investment property. Some of these may include  : 

  • Initial costs: Lenders mortgage insurance, loan establishment fees, building and landlord insurance. 
  • Taxes: Stamp duty, land tax, income tax (from rental payments) and council rates. 
  • Ongoing costs: Body corporate fees, utilities, maintenance and repairs, management fees and mortgage repayments 

Home loan calculators

Use our calculators to work out your potential loan repayments and get an indication of how much you may be able to borrow.

Investor home loan rates

  

Features

We have some great features that should put us top of your list when thinking about refinancing.

No ongoing fees

Did you know some lenders application fees can be over $1,000 and some home loans have annual fees of over $350?

If you refinance your mortgage with us, you’d have no monthly account fee, no annual fee and no ongoing costs (except your regular loan repayment). The only fee we charge is a rate lock fee if you choose a fixed rate loan.

Redraw

On a variable rate loan, you have an unlimited number of redraws so you can easily access extra cash if you’re already ahead of your scheduled repayments.

Banking at your fingertips

Our online banking is flexible and convenient and includes an online application tracker to keep you updated with everything you need to know from submitting your refinance application to approval.

Great customer service

Our Australian-based customer service team is ready to help 7 days a week.

About the application process
  • Apply

    Kick off your application in as little as 10 minutes. A home loan specialist will call you by the next day.
  • Documents & Valuation

    We’ll need some documents to verify your situation and we’ll also do a valuation on your property.
  • Loan Assessment

    Before a loan is approved, we need to assess your application.
  • Loan Contract

    We’ll send you a Contract Pack that contains all the legal documents we’ll need to settle your loan.
  • Settlement

    After you’ve returned all relevant documents, our settlement agent will arrange settlement with your current loan provider.

Ready to get started?

Let’s go

Learn more about investing in property

So you have some questions about buying your first investment property – we’re here to help. 

© UBank is a division of National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686. Terms of use available here. Target Market Determinations for these products are available at ubank.com.au/tmd. Are you experiencing financial difficulty? See how we can help.

       

    


UHomeLoan info: Credit is provided by AFSH Nominees Pty Ltd Australian Credit Licence 391192. UBank is the mortgage manager for UHomeLoan products. Govt charges may apply. The comparison rate is based on a secured loan of $150,000 over the term of 25 years. ^WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.