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Property Investment FAQ

A. Investing in property has many benefits when looking to build long term wealth. If you take the time and select your investment properties well, there are a number of advantages including: earning a profit from capital growth in property, additional income through rent or tax benefits including negative gearing.

A. In some cases, you do not need a deposit. If you have sufficient equity in your current home, you can use this as a deposit for your new investment home loan.

 

If you’ve owned your own home for a few years, you could have built up quite a bit of your equity in your property. For example, a property worth $500,000 with a mortgage loan of $200,000 has equity of $300,000. You can use this equity to pay the deposit on your investment property. To find out more about your deposit options or how much equity you have in your home, contact us , book a Mobile Lender or visit a Service Centre.

A. Yes. You can use the rental income to help boost your borrowing power.

A. This will vary depending on the loan amount, interest rate and term. Try our Loan Repayment Calculator to get an estimate of your repayments.

A. Property investment loans are not too different from any other type of home loan. You can choose fixed, variable or split interest rates and flexible features like redraws. If you are looking to invest in property, G&C Mutual Bank has a number of home loan options to choose from. We are here to support you - contact us, book a Mobile Lender or visit a Service Centre.

A. Negative gearing means that the expenses incurred in owning an investment property, including interest you are paying on the loan is more than the income it is generating. As a result you are making a loss, which means you may claim a tax benefit. Please refer to your tax adviser to determine your individual circumstances.

Do I have a plan?

It’s important to know why you want to invest, what you hope to achieve and have clear goals before setting out. You may want to talk to your accountant or Financial Planner to help you determine what your long team wealth strategy is.

 

How much can I afford to borrow?

As with any home loan it’s important to understand how much you can afford to borrow before looking for a property. We can help you to understand how much equity you have, and provide loan pre-approval. Contact us, book a Mobile Lender or visit a Service Centre.

 

Have I done sufficient research?

It’s important to understand that investing in property can result in good returns, however success is not guaranteed, especially if you are not prepared. It is important to do your research before you make any decisions. You should be looking at growth areas, attend open inspections and monitor sales results in particular areas before deciding on where to buy. Once you have decided which area to buy in, it’s worth getting to know the local market. It may be worth talking to locals, real estate agents and councils to get a deeper knowledge of the area and what properties are worth.

 

Are there any additional costs?

Once you have bought your property it’s important to understand and be aware of any ongoing costs. As with any property, you will need to pay interest, council rates, land tax, property management and strata fees (if applicable). As a landlord, you have other financial responsibilities, like maintenance and repairs and landlords insurance.

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Any advice or information on this site does not take into account your personal objectives, financial situation or needs and you should consider whether it is appropriate for you. Please review G&C Mutual Bank's Terms and Conditions before acquiring the product.

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