Negative gearing is a property investment strategy used in Australia where the costs of owning an investment (like mortgage interest, maintenance, and other expenses) exceed the income it generates — typically rent. This results in a net loss, which can then be deducted from your taxable income, reducing your overall tax bill.

How It Works

Let’s say:

• You earn $80,000 from your job
• Your investment property runs at a $10,000 loss (expenses > rental income)

You can deduct that $10,000 from your income, so you’re only taxed on $70,000, saving you roughly $3,000–$4,000 in tax depending on your tax bracket

Why Use Negative Gearing?

• Tax benefits: Reduces your taxable income
• Capital growth: Investors hope the property’s value increases over time, offsetting the short-term losses
• Rental supply: Encourages investment in housing, which can help keep rents competitive

Risks & Considerations

• You’re still losing money each year — the tax refund only softens the blow
• It relies on property prices rising over time
• If the market dips or interest rates rise, losses can grow
• It’s not suitable for everyone — especially if cash flow is tight or income is unstable

Negative vs Positive Gearing

Would you like to see a real-world example or explore whether it suits your financial goals?

A Positive Cash Flow Property is an investment property that earns more income than it costs to own, even after accounting for expenses like mortgage interest, maintenance, insurance, and property management fees. In short, it puts money in your pocket each week or month — rather than draining it.

How It Works

• You receive rental income from tenants
• Your total expenses (loan repayments, rates, insurance, etc.) are less than that income
• The surplus is positive cash flow, which you can use or reinvest

Example

Let’s say:

• Rental income: $30,000/year
• Expenses (loan interest, rates, insurance): $25,000/year ➡️ You earn $5,000/year in positive cash flow

Benefits

• Passive income: Helps cover living costs or fund other investments
• Financial flexibility: Less reliance on your salary
• Portfolio growth: Easier to qualify for more loans
• Lower risk: You’re not out-of-pocket each month

Risks & Considerations

• May have lower capital growth than negatively geared properties
• Often found in regional areas or lower-priced suburbs
• Interest rate rises can erode cash flow
• Vacancy periods reduce income

Where to Find Them in Australia

• These properties can be found in any of the Australian States Queensland, Tasmania, and WA have many suburbs with positive cash flow properties
• You can do your own research or engage a specialist to fins a positively geared property for you.

Would you like help identifying suburbs or properties that match your investment goals? I can help you build a shortlist.

The average return on property in Australia typically combines rental yield and capital growth, and varies by location, property type, and market conditions. Here's a snapshot of what investors generally see:

Long-Term Average Returns

• Over the past 100 years, Australian property has delivered an average annual return of around 6.8%
• From 1998 to 2018, residential property averaged 10.2% per annum (gross) when combining rental income and capital growth

Rental Yields (2025 Snapshot)

• Gross rental yields vary by city and property type:

Net yields (after expenses) are typically 1.5–2% lower than gross yields

What’s Considered a “Good” Return?

• Rental yield: 5%+ is solid; 6–8% is excellent
• Capital growth: 5–7% annually is strong
• Combined returns of 10%+ are considered very good

Would you like help estimating returns for a specific suburb or property type? I can help you build a tailored investment profile.

How long it takes for property to double in value in Australia?

Property value increases at different growth rates in Australian states. Depending on the return property double sin it value.

The average return on property in Australia typically combines rental yield and capital growth, and varies by location, property type, and market conditions. Here's a snapshot of what investors generally see:

Long-Term Average Returns

• Over the past 100 years, Australian property has delivered an average annual return of around 6.8%
• From 1998 to 2018, residential property averaged 10.2% per annum (gross) when combining rental income and capital growth

What Affects Doubling Time?

• Interest rates and borrowing capacity
• Population growth and migration
• Supply constraints and infrastructure development
• Local market dynamics — some suburbs outperform dramatically

Would you like help estimating how long a specific suburb or property type might take to double? I can run the numbers for you.

Equity in property is the difference between your property's market value and the amount you still owe on your home loan. It represents how much of the property you truly “own.”

How to Calculate Equity

If your home is worth $800,000 and your mortgage balance is $500,000:

• Equity = $800,000 – $500,000 = $300,000

This $300,000 is your total equity. However, not all of it may be accessible.

Usable Equity

Lenders typically allow you to borrow up to 80% of your property's value, minus your loan balance:

• Usable Equity = (80% × Property Value) – Loan Balance
• Using the example above: Usable Equity = (0.8 × $800,000) – $500,000 = $140,000

This is the amount you could potentially use for:

• Buying an investment property
• Renovating your home
• Investing in shares or other assets
• Consolidating debt

How to Build Equity

• Make extra repayments on your loan
• Renovate or upgrade your property
• Wait for market growth to increase your home’s value
• Use an offset account or redraw facility to reduce interest and grow equity faster

Would you like help estimating your current equity or exploring how to use it for your next investment?

Withdrawing equity from your property in Australia means tapping into the value you’ve built up — either through repayments or market growth — and turning it into usable funds. Here’s how you can do it:

Common Ways to Access Equity

1. Refinance Your Home Loan
   • Replace your current mortgage with a larger one
   • The difference between the new loan and your existing balance is released as cash
   • Often called a cash-out refinance
2. Top-Up Your Existing Loan
   • Increase your current loan amount without switching lenders
   • Funds are deposited into your account or offset facility

Take Out a Home Equity Loan

• A separate loan secured against your property’s equity
• Useful if you want to keep your original loan untouched

 Use a Redraw Facility

• If you’ve made extra repayments, you can withdraw those funds
• Works best for short-term needs or emergencies

Reverse Mortgage (Age 60+)

• Lets older Australians access equity without selling
• No repayments required until the property is sold or the borrower passes away

How Much Can You Withdraw?

Most lenders allow access to up to 80% of your property’s market value, minus your current loan balance. For example:

• Property value: $800,000
• 80% of value: $640,000
• Loan balance: $400,000 ➡️ Usable equity = $240,000

What Can You Use It For?

• Renovations or home upgrades
• Buying an investment property
• Consolidating debts
• Funding education or medical expenses
• Starting a business

Things to Watch Out For

• You’ll pay interest on the withdrawn equity
• May incur refinancing fees or Lenders Mortgage Insurance (LMI) if borrowing over 80%
• Your borrowing capacity and credit score still matter

Want help estimating how much equity you could access or comparing lenders that offer flexible equity release options? I can walk you through it.

Yes, you can absolutely use home equity as a deposit to buy an investment property in Australia — and it’s a popular strategy among property investors.

How It Works

• Your usable equity is the portion of your home’s value that lenders will let you borrow against — typically up to 80% of your property’s value, minus your current loan balance.
• You can access this equity by:
  • Refinancing your existing home loan
  • Topping up your current loan
  • Taking out a separate equity loan

Example

If your home is worth $800,000 and your mortgage is $500,000:

• 80% of $800,000 = $640,000
• Usable equity = $640,000 – $500,000 = $140,000
• You could use this $140,000 as a deposit on an investment property

Benefits

Avoids the need for cash savings

May help you avoid Lenders Mortgage Insurance (LMI) if the deposit is 20% or more

Can be a stepping stone to building a property portfolio

Things to Consider

• You’ll be borrowing more, so repayments will increase
• Your lender will assess your income, expenses, and credit history
• You may incur refinancing fees or valuation costs
• If property values fall, you risk negative equity

Helpful Guides

• Realestate.com.au explains how to use equity to buy an investment property
• NAB’s guide to calculating usable equity and borrowing limits
• The Mortgage Agency’s strategy for using equity as a deposit

Would you like help estimating your usable equity or exploring lenders that offer flexible equity release options? I can run the numbers with you.

Yes, you can draw equity from your home without increasing your income — but lenders will still assess whether your current income is enough to support the larger loan. Here’s how it works:

How Lenders View Equity Access

• Lenders typically allow you to borrow up to 80% of your property’s value, minus your current loan balance
• Even if your income stays the same, you may qualify if:
  • You have strong equity (e.g. 40–50% ownership)
  • Your expenses and debts are low
  • You have a good credit score
  • You’re not borrowing beyond your serviceability limits

Options That Don’t Require Income Increase

1. Cash-Out Refinance
   • Replaces your current loan with a larger one
   • The extra funds are released as a lump sum
   • Income must support repayments, but no increase is required if you already qualify
2. Top-Up Loan
   • Adds to your existing loan without switching lenders
   • Same income, same lender — just more borrowed

 Reverse Mortgage (Age 60+)

• No income required
• You access equity as a lump sum or income stream
• Repayment is deferred until the property is sold or the borrower passes away

Home Equity Loan

• A second loan secured against your property
• Can be structured as a line of credit or lump sum
• Income requirements vary, but some lenders are flexible3

Things to Watch Out For

• You may pay higher interest rates or Lenders Mortgage Insurance (LMI) if borrowing over 80%
• Some lenders require proof of purpose for equity release
• Drawing equity increases your debt — so repayments must still be manageable

Want help estimating how much equity you could access or finding lenders that offer flexible options for your current income level? I can walk you through it.

Refinancing a home loan in Australia means replacing your current mortgage with a new one — either with a different lender or a new product from your existing lender. It’s often done to get a better interest rate, access equity, or restructure repayments. Here's how to go about it:

Step-by-Step Guide to Refinancing

1. Review Your Current Loan
   • Check your interest rate, fees, and features
   • Identify what’s missing (e.g. offset account, redraw, lower rate)
2. Compare New Loan Options
   • Use comparison sites like Canstar or Money.com.au to find better rates
   • Look for features like fee-free extra repayments, redraw, or cashback offers
3. Calculate Potential Savings
   • Use a refinance calculator to estimate how much you could save
   • Factor in upfront costs like application fees, valuation, and discharge fees
4. Apply for the New Loan
   • Submit documents: ID, income proof, property details
   • Get conditional approval and valuation
5. Discharge Your Old Loan
   • Your new lender will handle the payout of your existing mortgage
   • You’ll sign a discharge form to release the old loan
6. Settle and Start Fresh
   • Once approved, your new lender pays off the old loan
   • You begin repayments under the new terms

Why Refinance?

• Lower interest rate = lower repayments
• Access equity for renovations or investments
• Consolidate debts into one manageable loan
• Switch from fixed to variable (or vice versa)
• Add features like offset or redraw

Would you like help comparing current refinance rates or calculating how much you could save? I can walk you through it!

An Interest Only Loan is a type of home loan where, for a set period (usually 1–5 years), you only pay the interest on the loan — not the principal. That means your repayments are lower during this time, but your loan balance doesn’t shrink2.

How It Works

• You borrow a lump sum (e.g. $500,000)
• For the interest-only period, you pay just the interest — say, $2,000/month
• After the period ends, repayments jump because you start paying principal + interest

Why People Choose It

• Lower repayments upfront — helpful during financial transitions or for investors
• Tax benefits — investors can deduct interest payments from taxable income
• Cash flow flexibility — frees up money for renovations, emergencies, or other investments

Risks & Considerations

• No Equity Growth – You’re not reducing your loan balance during the interest only period
• Higher long-term cost – You’ll pay more interest overall than with a standard loan
• Repayment Shock – Payments can jump significantly when the interest only period ends
• Stricter lending Criteria – lenders assess your ability to repay over a shorter term

Who Offers Interest Only Loans?

• Major banks like CommBank, Westpac, and ANZ
• Specialist lenders for investment properties or bridging finance Like Liberty Finance
• Rates typically start around 4.99%–5.55% p.a., but comparison rates are higher

Would you like help comparing interest-only vs principal-and-interest loans — or estimating how much you’d pay over time? I can run the numbers with you.

Absolutely! You can self-manage your property and tenants in Australia, and many landlords do just that. It’s perfectly legal and can be both cost-effective and empowering, if you follow the right steps and comply with tenancy laws.

You will be responsible for:

• Advertising the property on platforms like realestate.com.au or domain.com.au
• Screening tenants (including reference and background checks)
• Preparing legal documents like lease agreements, condition reports, and bond lodgement
• Collecting rent and issuing receipts
• Handling maintenance and repairs
• Conducting inspections and managing disputes
• Complying with tenancy laws in your state or territory

You must follow residential tenancy laws, including issuing a Landlord Information Statement in NSW. Bond money must be lodged with the relevant state authority.

Pros of Self-Managing

• Save on agent fees (typically 5–12% of rental income)
• Direct control over tenant selection and property care
• Closer relationship with tenants, which can improve communication

Cons to Consider

• Time-consuming: You’ll need to be available for inspections, repairs, and emergencies
• Legal risk: Mistakes in paperwork or compliance can lead to fines
• Emotional stress: Handling disputes or evictions can be tough

Helpful Tools

Platforms like RentBetter and Real Estate Yourself offer digital tools to:

• Create lease agreements
• Lodge bonds
• Track rent and expenses
• Schedule inspections and repairs

Upfront Costs (Before You Rent It Out)

These are one-time expenses to get the property ready:

• Stamp Duty: Varies by state; can be tens of thousands
• Legal & Conveyancing Fees: ~$1,500–$2,000
• Building & Pest Inspections: ~$300–$1,000
• Loan Setup Fees: ~$150–$750
• Buyer's Agent Fees (optional): Often 1–2% of purchase price
• Depreciation Schedule: ~$300–$700, to claim depreciation expense.

Ongoing Management Costs

These are recurring expenses that affect your monthly cash flow, namely:

• Property Management Fees: 5- 10% of rental income
• Council& Water Rates: ~$2,000–$4,500/year, varies by location
• Landlord Insurance: ~$1,000–$2,000/year, covers damage, rent default
• Maintenance & repairs: ~$1,000–$2,000/year, budget extra for older properties
• Strata/Body Corporate Fees: $30–$600/week, applies to units/townhouses
• Vacancy Buffer: 2–4 weeks of rent/year, plan for tenant turnover

Accounting & Tax Advice: ~$75–$250/year, helps with deductions and compliance

1. Gross Rental Yield

This is the simplest form and doesn’t account for expenses.

Formula: Gross Rental Yield = (Annual Rent ÷ Property Cost) × 100

Example,

• Weekly rent: $500
• Annual rent: $500 × 52 = $26,000
• Property cost: $650,000, Gross yield = ($26,000 ÷ $650,000) × 100 = 4%

2. Net Rental Yield

This gives a more accurate picture by factoring in expenses like insurance, maintenance, strata fees, and council rates.

Net Rental Yield = [(Annual Rent – Annual Expenses) ÷ Property Cost] × 100

Example:

• Annual rent: $26,000
• Annual expenses: $6,000
• Property cost: $650,000 Net yield = ($20,000 ÷ $650,000) × 100 = 08%

When it comes to investment properties in Australia, the tax office allows a wide range of deductible expenses — but only if the property is rented or genuinely available for rent. Here's a breakdown of what you can claim:

Immediately Deductible Expenses

These can be claimed in the same financial year:

• Loan interest and bank fees (only the portion related to the investment)
• Council rates and water charges
• Property management fees and commissions
• Advertising for tenants
• Repairs and maintenance (e.g. fixing a leaking tap — not improvements)
• Insurance (landlord, building, contents, public liability)
• Legal and accounting fees related to rental activities
• Pest control, gardening, and cleaning
• Utilities (if paid by the landlord)
• Stationery, phone, and internet used for managing the property
• Depreciation on assets under $300 (e.g. small appliances)
• Quantity surveyor fees for preparing a depreciation schedule

Claimed Over Time

These are spread across several years:

• Borrowing expenses (e.g. loan application fees, LMI, title search fees — claimed over 5 years)
• Capital works deductions (e.g. renovations, structural improvements — claimed at 2.5% per year for 40 years)
• Depreciation on assets over $300 (e.g. carpets, air conditioners — claimed over their effective life)

Non-Deductible Expenses

These cannot be claimed:

• Stamp duty on purchase
• Legal and conveyancing fees for acquisition
• Travel expenses to inspect or maintain the property (unless you're running a rental business)
• Expenses paid by tenants
• Loan principal repayments
• Initial repairs or improvements made to make the property rentable

Keeping detailed records — receipts, invoices, and bank statements — is essential to support your claims. The ATO is cracking down on non-compliance, so accuracy matters.

An interest-only loan is a type of home loan where, for a set period (usually 1–5 years), you only pay the interest

How It Works

• You borrow a lump sum (e.g. $500,000)
• During the interest-only period, you pay just the interest — say, $2,000/month
• After the period ends, repayments jump because you start paying principal + interest

Why People Choose It

• Lower repayments upfront — helpful during financial transitions or for investors
• Tax benefits — investors can deduct interest payments from taxable income
• Cash flow flexibility — frees up money for renovations, emergencies, or other investments

• Risks & Considerations

Who Offers Interest-Only Loans?

• Major banks like CommBank, Westpac, ANZ and Liberty Finance
• Specialist lenders for investment properties or bridging finance
• Rates typically start around 4.99%–5.55% p.a., but comparison rates are higher

When buying an investment property in Australia, choosing the right ownership structure can impact your tax, asset protection, borrowing power, and long-term strategy. Here’s a breakdown of the most common options:

1. Individual Ownership

• Property is held in your personal name
• Pros: Simple setup, access to negative gearing, eligible for 50% CGT discount
• Cons: Limited asset protection, income taxed at personal rates
• Best for: First-time investors or those with low risk exposure

2. Joint Ownership

• Shared ownership with a spouse, partner, or friend
• Can be structured as:
  • Joint Tenants: Equal ownership; survivor inherits full share
  • Tenants in Common: Unequal shares; each owner’s share goes to their estate
• Pros: Flexible income splitting
• Cons: Limited asset protection
• Best for: Couples or co-investors with aligned goals

3. Family (Discretionary) Trust

• Property held by a trust, managed by a trustee
• Pros: Strong asset protection, flexible income distribution, tax-effective for families
• Cons: No negative gearing benefits, higher setup and compliance costs
• Best for: High-income earners or families with multiple beneficiaries

4. Unit Trust

• Beneficiaries hold fixed units (like shares)
• Pros: Clear ownership percentages, good for unrelated parties
• Cons: No income streaming, limited flexibility
• Best for: Joint ventures or business partners

5. Company Structure

• Property owned by a company
• Pros: Flat tax rate (27.5–30%), strong asset protection
• Cons: No CGT discount, no negative gearing, complex compliance

Best for: Property developers or high-income investors

A dual occupancy property in Australia refers to a single block of land that contains two separate dwellings — either attached (like a duplex) or detached (two standalone homes). It’s a clever way to maximise land use, generate multiple income streams, or accommodate extended family.

🏠 Types of Dual Occupancy

Both dwellings are usually on one title, unless subdivided later.

Why It’s Popular

• Double rental income potential
• Increased property value and equity
• Flexible living for multi-generational families
• Tax benefits through depreciation and deductions
• Better land utilisation — especially in high-demand suburbs

Things to Consider

• Requires council approval and zoning compliance
• May need separate utility connections
• Subdivision (to sell separately) involves extra approvals and costs
• Design must meet privacy, access, and parking requirements

• Dual Occupancy vs Granny Flat

Yes, you can get a construction loan in Australia to build a house. What Is a Construction Loan?

A construction loan is a type of home loan designed specifically for building or renovating a property. Instead of receiving the full loan upfront, the funds are released in stages — known as progress payments — as construction progresses2.

How It Works

• You pay interest only on the amount drawn down during construction
• Funds are released at key stages:
  1. Slab/Foundation
  2. Frame
  3. Lock-up (windows, doors, roof)
  4. Fit-out (plumbing, electrical, fixtures)
  5. Completion (painting, fencing, final clean-up)3

Loan Features

Who Offers Construction Loans?

• CommBank, ANZ, Westpac, and NAB
• Specialist lenders like Pacific Mortgage Group and Bank Australia
• Rates start around 5.08%–5.55% p.a., depending on lender and loan type5

What You’ll Need

• Council-approved plans
• Fixed-price building contract
• Builder’s insurance and licenses
• Valuation and progress payment schedule

A split loan is a home loan structure in Australia where your mortgage is divided into two or more portions, typically combining fixed and variable interest rates. It’s designed to give you the certainty of fixed repayments and the flexibility of variable features — all in one package.

How It Works

Let’s say you borrow $600,000 and choose a 60/40 split:

• $360,000 is on a fixed rate (e.g. 5.49%) — repayments stay the same for a set period
• $240,000 is on a variable rate (e.g. 5.88%) — repayments fluctuate with market rates

Each portion is treated like a separate loan, with its own repayment schedule and features.

Benefits of a Split Loan

• Rate protection: Fixed portion shields you from interest rate hikes
• Flexibility: Variable portion allows extra repayments, redraws, and offset accounts
• Balanced risk: You’re not fully exposed to rate rises or locked out of rate drops
• Customisable: You can choose any split ratio (e.g. 50/50, 70/30) based on your goals

⚠️ Things to Watch Out For

Who Offers Split Loans?

Most major banks and lenders — including CommBank, ANZ, and Westpac — offer split loan options. You can explore examples on CommBank’s split loan page or Home Loan Experts’ guide to split mortgages.

Would you like help comparing split loan options or calculating how much you could save with a custom split? I can run the numbers with you.

Yes, you can get a land loan in Australia to buy vacant land — whether you're planning to build soon or hold it as an investment. Here's a full rundown:

What Is a Land Loan?

A land loan is a mortgage used to purchase vacant land. It’s often the first step before taking out a construction loan to build a home or investment property later

Key Features

Planning to Build?

• Some lenders require building plans within 12–24 months of purchase
• If you’re buying land to build later, you may need to show intent to build or a fixed-price building contract

Lenders That Offer Land Loans

• ANZ, AMP, Gateway Bank, and Qudos Bank offer land loans with redraw, offset, and fixed/variable rate options3
• Specialist lenders may accept higher LVRs but charge risk fees of 1–1.5%

Would you like help comparing land loan rates or estimating how much deposit you’d need for a specific block? I can walk you through it.

The time it takes to construct a house for investment in Australia can vary widely — but here’s a realistic breakdown based on current 2025 data:

Typical Construction Timeline:

These estimates include both design and planning and actual construction

Key Stages of Construction

1. Design & Planning: 3–6 months
   • Includes architectural drawings, council approvals, and permits
2. Site Preparation: 1–2 months
   • Land clearing, soil testing, excavation
3. Construction Phase: 6–12 months
   • Slab, frame, lock-up, internal fit-out, and final touches
4. Handover: 1–2 weeks
   • Final inspection and keys delivered

Factors That Affect Build Time

• Location: Metro builds are faster than regional ones
• Builder efficiency: Experienced teams stick to timelines better
• Weather: Rain, storms, or heatwaves can cause delays
• Supply chain: Material shortages or shipping delays
• Council approvals: Can take 6–10 weeks depending on complexity

State-by-State Averages (2025)

Would you like help estimating a timeline for a specific suburb or builder? I can help you map it out based on your investment goals.

Owning an investment property in Australia comes with a mix of upfront, ongoing, and occasional costs — and understanding all three is key to building a profitable portfolio. Here's a full breakdown:

Upfront Costs (Before You Rent It Out)

These are one-time expenses to acquire and prepare the property:

• Stamp Duty: Varies by state; can be tens of thousands (e.g. ~$33,000 for an $850,000 property in NSW)
• Legal & Conveyancing Fees: ~$1,500–$2,000
• Building & Pest Inspections: ~$300–$1,000
• Loan Setup Fees: ~$150–$750
• Mortgage Registration Fee: ~$150–$200
• Lenders Mortgage Insurance (LMI): If deposit <20%; can be added to loan
• Buyer's Agent Fees (optional): Often 1–2% of purchase price

Ongoing Costs (Monthly/Annual)

• These affect your cash flow and rental yield:

Occasional or Hidden Costs

These can sneak up if you're not prepared:

• Tenant Replacement Fees: 1–2 weeks’ rent when re-leasing
• Renovations: Every 3–5 years; $7,000–$50,000 depending on scope
• Special Strata Levies: For major building works
• Depreciation Schedule (optional but useful): ~$300–$700
• Land Tax: Annual charge based on land value; varies by state2
• Income Tax on Rental Income: Based on your tax bracket; deductions apply

Example Snapshot

For a $950,000 townhouse in NSW:

• Acquisition costs: ~$43,990 (stamp duty, legal, inspections, loan fees)
• Annual costs: ~$14,350 (rates, insurance, strata, maintenance, vacancy)
• Rental income: ~$22,500/year - Net cash flow depends on loan structure, tax deductions, and vacancy rate

Yes, you can absolutely buy an investment property with your partner in Australia — and it’s a common strategy to boost borrowing power and share financial responsibilities. But there are a few key things to consider before diving in:

Joint Tenancy – Equal pwnership; if one partner passes away, the other  inherits the full share.

Tenants in Common – Ownership can be split unequally (e.g.70/30); each partner can will their share separately.

Tenants in Common is often preferred for investment properties due to flexibility in ownership and estate planning

Benefits of Buying Together

• Increased borrowing power: Combined incomes help qualify for larger loans
• Shared costs: Split deposit, mortgage repayments, maintenance, and taxes
• Access to better properties: Pooling resources opens up higher-value opportunities
• Tax advantages: You can split rental income and deductions based on ownership share

Risks & Considerations

• You’re both jointly liable for the full loan — not just your share
• If one partner wants to sell or exit, it can be complex without a clear agreement
• Disputes over property decisions (e.g. renovations, refinancing, selling) can arise

Must-Have: Co-Ownership Agreement

A legal agreement should outline:

• Ownership percentages
• Financial contributions
• Decision-making processes
• Exit strategy and dispute resolution

This protects both parties and avoids future misunderstandings

Pro Tip

Work with a mortgage broker to structure the loan properly — you can even split the loan into portions that reflect each partner’s share.

Would you like help drafting a co-ownership checklist or comparing ownership structures based on your goals? I can walk you through it

In Australia, the deposit needed to buy an investment property typically ranges from 10% to 20% of the property's purchase price — but the sweet spot is usually 20%. Here's how it breaks down:

Factors That Influence Deposit Requirements

• Your financial profile: income, credit score, existing debts
• Property type and location
• Lender policies: some allow lower deposits with LMI
• Use of equity: you can use equity from another property instead of cash
• Guarantor support: a family member may help secure the loan

Example

For a $700,000 investment property:

• 20% deposit = $140,000 (no LMI)
• 10% deposit = $70,000 + LMI (could add $10,000–$15,000 to loan)

Other Upfront Costs to Budget For

• Stamp duty: varies by state; often $20,000–$40,000+
• Legal and conveyancing fees: ~$1,500–$3,000
• Building & pest inspections: ~$300–$700
• Loan setup fees: ~$150–$750

Land tax in Australia is an annual state government levy applied to the unimproved value of land — meaning the value of the land itself, excluding buildings or improvements. It’s primarily charged on investment properties, commercial land, and vacant land, not on your principal place of residence.

How Land Tax Works

• Assessed annually based on land ownership as of a specific date (usually 31 December)
• Calculated on the aggregated value of all taxable land you own in a state
• Thresholds and rates vary by state and territory
• Owner-occupied homes are generally exempt

Example: NSW (2025)

• General threshold: $1,075,000
• Premium threshold: $6,571,000
• Rates:
  • $100 + 1.6% of land value above the general threshold
  • $88,036 + 2% of land value above the premium threshold

So if you own investment land worth $1.5 million, you’d pay roughly $6,700 in land tax.

Key Considerations

• Multiple properties are aggregated for tax purposes
• Trusts and companies may face different thresholds or surcharge rates
• Foreign owners often pay additional surcharge land tax
• Exemptions may apply for:
  • Principal place of residence
  • Primary production land (farms)
  • Charitable or non-profit use

Want to Estimate Your Land Tax?

You can use state-specific calculators like:

• Revenue NSW Land Tax Calculator
• Victoria’s State Revenue Office Land Tax Guide

The Loan-to-Value Ratio (LVR) is a key metric used by lenders in Australia to assess the risk of a home or investment loan. It represents the percentage of the property’s value that you’re borrowing — and the lower the LVR, the less risky the loan is for the lender.

LVR = (Loan Amount Property value)X100

Example:

• Property value: $800,000
• Loan amount: $640,000 ➡️ LVR = (640,000 ÷ 800,000) × 100 = 80%

Why LVR Matters

• LVR ≤ 80%: Ideal range — avoids Lenders Mortgage Insurance (LMI) and often qualifies for better interest rates
• LVR > 80%: Considered higher risk — may require LMI and stricter lending criteria
• LVR > 90%: Very high risk — limited lender options and higher interest rates

What Affects Your LVR

• Deposit size: Bigger deposit = lower LVR
• Property valuation: Lenders use their own valuation, which may differ from market price
• Loan structure: Using equity or guarantors can reduce your LVR

To be Worked further

Home Loan for Professionals

• Home Loan for Doctors

• Home Loan for Accountants/Auditors

• Home loans for IT Professional

• Home loans for NSW Government/federal Employees

• Home Loans for Nurses