How to buy an investment property in Brisbane

June 26, 2015
Melanie Grevis-James

Mortgage Choice Ashgrove can help you buy an investment property in Brisbane.

Now is a perfect time to get started in the investment property market in Brisbane. Here we tell you why, and some tips on how you can do it.

In addition, if you find a potential investment property you’re interested in, Mortgage Choice Ashgrove can create a personalised report of how the selected investment property could work for you financially.

Why now is a good time to invest in property:

Australian interest rates are at historically low levels at the moment, and this presents an excellent opportunity for borrowers, especially for buyers who are entering the investment property market for the first time.

Investing in the property market now is better than it has been in the last seven years.

Current interest rates have created a situation where the holding costs of owning an investment property are very low, and in some cases property is negatively geared pre-tax and positively geared post-tax. This means the property is creating cash income for you each week while the tax man and tenant cover the costs for a property that should grow in value over time.

In terms of risk, it is currently possible to obtain a five-year fixed rate at 4.69%. This creates a level of certainty regarding how an investment property will perform in terms of yield over a five year period.

Tips on buying an Investment Property:

Here are a few things to consider before purchasing an investment property:

  • What is the purpose of the investment? Is it for long-term capital gain, short-term profit, negative gearing, to generate an income with cash flow, or purchasing for future development? In each case, this will determine the type of property to purchase.
  • Will it achieve the required rental return? You need to consider whether the property will be desirable to tenants, including location, facilities, and property features.
  • Will I have enough cash flow to service the loan and other costs? Not only the loan costs need to be considered. Other costs include maintenance, rates, interest on the loan (if rates change), insurance, body corporate fees (if applicable), tax implications etc…
  • What risks are involved with an investment property? Things to think about include damage by tenants (malicious or accidental); periods of time that the property may remain empty for and no income; interest rate changes; property market slumps and falling prices; property damage due to other causes (fire, flood, pests, storm etc...) 
  • Do you have a budget prepared? Make sure you consider all costs and income, and whether they fit within your budget. Costs to consider include the purchase price, stamp duty, deposit, conveyancing, solicitor, any repairs needed, expenses and on-going maintenance costs, type of loan and repayments, holding costs, and tax implications. This is where we, as your local mortgage broker can assist, by preparing a projected budget for you. 

How Mortgage Choice Ashgrove can help you purchase your investment property:

We have a lot of experience in the lending market at Mortgage Choice Ashgrove. So if you’re thinking of buying your first investment property – now is the time.

Our detailed Property Investment information can provide you with the numbers showing how a specific property can work financially for you. As well as working with our in-house Financial Planner, we have modelling tools that show our clients the full potential cost and cash flow position, after taking into consideration net rental income and tax concessions for negative gearing and depreciation.

Our data shows that the holding costs for an investment property is around $40 to $80 per week for most clients, less for clients on a substantial income and who are buying new properties with substantial depreciation allowances.
You may be very surprised to find out how cost effective it is to purpose an investment property at the moment, with just a modest deposit or equity in an existing property.

Click here for an example of the Property Information Product we can customise for your personal situation. This is backed by a detailed report backing up the numbers.

Check out our videos online - let us show you how can assist you. 

Contact Stuart Pullar on 07 3463 0501 today for more information.
or email:

Posted in: Property investment

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