Top Strategies to Secure Investment Loans for Established Properties

Learn how pharmacy assistants can access investment loan options from banks and lenders across Australia for established properties

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Understanding Investment Property Loans for Established Properties

As a pharmacy assistant, you're already familiar with helping others make informed decisions about their health. The same careful approach applies when buying an investment property. Investment loan options from banks and lenders across Australia offer various pathways to help you invest in real estate, particularly when purchasing established properties like apartments, townhouses, or stand-alone dwellings.

An investment property loan differs from a home loan in several key ways. The interest rate is typically higher, and lenders assess your borrowing capacity differently when you're buying a rental property. Understanding these differences is crucial for your property investment strategy.

Key Factors to Consider Before Applying

Before starting your investment loan application, several important factors require attention:

Loan to Value Ratio (LVR): Most lenders require a lower LVR for investment properties, often around 80% to avoid lenders mortgage insurance (LMI)
Deposit requirements: Typically 20% of the property purchase price plus additional costs
Stamp duty: This varies by state and adds to your upfront costs
Rental yield: Research property markets to ensure adequate rental income potential
Your borrowing capacity: Lenders assess this based on your income, expenses, and existing debts

Types of Established Investment Properties

When considering your first investment property, established properties offer several advantages. You can inspect the actual property, understand its rental history, and assess the local property market conditions. Common options include:

Apartments: Often provide higher rental yields in urban areas, though body corporate fees must be factored into your calculations.

Townhouses: Offer a balance between apartment living and house features, appealing to various tenant demographics.

Stand-alone dwellings: Typically attract long-term tenants, particularly families, which can provide stable rental income.

Investment Loan Interest Rates and Features

Investment property loan features vary significantly between lenders. Finance & mortgage brokers can help you access investment loan options that suit your circumstances.

Variable Interest Rate: These fluctuate with market conditions and often provide more flexibility with repayments and features.

Fixed Interest Rate: Offers certainty for a set period, helping with budgeting and calculating investment loan repayments.

Many lenders offer interest rate discounts for investment loans, particularly for borrowers with strong financial profiles or existing banking relationships.

The Application Process

The investment loan application process requires thorough preparation. Your application will need:

• Recent bank statements (usually three months)
• Pay slips and employment verification
• Tax returns and financial statements
• Details of the property you intend to purchase
• Evidence of your deposit and additional funds for purchase costs

A streamlined application process often depends on having all documentation ready and working with experienced professionals who understand investment lending.

Calculating Investment Loan Repayments and Returns

Calculating investment loan repayments involves more than just the loan amount and interest rate. Consider:

Negative gearing: When rental income is less than property expenses, creating a tax deduction
Rental yield: Annual rental income as a percentage of property value
Ongoing costs: Property management, maintenance, insurance, and rates
Tax implications: Depreciation benefits and capital gains considerations

Building Your Investment Property Portfolio

Many successful property investors start with one established property and gradually build their investment property portfolio. Your first investment property experience provides valuable insights for future purchases and helps establish a relationship with lenders for subsequent applications.

Research property markets thoroughly, considering factors like population growth, infrastructure development, and rental demand in your chosen area.

Working with Finance & Mortgage Brokers

Finance & mortgage brokers specialise in investment lending and can access loan products from multiple lenders. This is particularly valuable for pharmacy assistants who may have unique employment circumstances or specific financial goals.

Brokers can help you understand different investment loan options, compare interest rates, and identify lenders who offer favorable terms for your situation. They also assist with the application process, ensuring your documentation meets lender requirements.

The property investment journey requires careful planning and professional guidance. By understanding investment loan features, researching property options thoroughly, and working with experienced professionals, you can make informed decisions about buying a rental property that aligns with your financial goals.

Call one of our team or book an appointment at a time that works for you to discuss your investment property loan options and start building your property investment strategy.


Ready to get started?

Book a chat with a Finance & Mortgage Broker at Pharmacist Home Loans today.