For pharmacy assistants considering expanding their financial portfolio through property investment, purchasing an investment townhouse can be a strategic move. Investment loans offer specific features designed to help you acquire rental properties while potentially benefiting from negative gearing and capital growth opportunities.
Understanding Investment Loans for Property Purchase
When buying an investment property, you'll need to access investment loan options from banks and lenders across Australia. These specialised loans differ from standard home loans in several ways, including interest rate structures, loan to value ratio (LVR) requirements, and eligibility criteria.
Investment property loans typically require:
• Higher deposit amounts (usually 20% minimum)
• Evidence of rental income potential
• Detailed financial documentation including bank statements
• Clear property investment strategy
Types of Investment Properties: Townhouse vs Other Options
When choosing between a townhouse, apartment, or stand alone dwelling for your first investment property, consider factors such as:
- Townhouses: Often provide better rental yield due to outdoor space and privacy
- Apartments: Lower maintenance costs but potentially higher body corporate fees
- Stand alone dwellings: Maximum control but higher purchase prices and maintenance responsibilities
Townhouses strike a balance between affordability and tenant appeal, making them attractive for building an investment property portfolio.
Investment Loan Interest Rate Options
Lenders offer both variable interest rate and fixed interest rate options for rental property loans. Variable rates may provide interest rate discounts and flexibility, while fixed rates offer certainty for calculating investment loan repayments.
Factors affecting your Investment Loan Interest Rate include:
• Your borrowing capacity
• Loan amount relative to property value
• Your employment history and income stability
• The property's location and rental potential
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Pharmacist Home Loans today.
The Investment Loan Application Process
Applying for an investment loan involves a streamlined application process when you work with experienced mortgage brokers. The investment loan application typically requires:
• Proof of income and employment
• Bank statements covering recent months
• Details about the property you wish to purchase
• Evidence of your ability to service the loan
Many pharmacy professionals benefit from investment loans for pharmacists that recognise their stable employment and earning potential.
Key Financial Considerations
Lenders Mortgage Insurance (LMI)
If your deposit is less than 20% of the property value, you'll likely need to pay lenders mortgage insurance (LMI). However, some lenders offer LMI waivers for pharmacists based on their professional status.
Stamp Duty and Additional Costs
When buying a rental property, factor in stamp duty, legal fees, building inspections, and ongoing costs such as council rates, insurance, and property management fees.
Loan to Value Ratio (LVR)
Most lenders cap investment property LVR at 80%, meaning you'll need at least a 20% deposit plus costs to avoid LMI.
Research Property and Market Analysis
Before committing to purchase an investment townhouse, thorough research is essential. Consider:
• Local property market trends and growth potential
• Rental demand in the area
• Proximity to transport, schools, and amenities
• Expected rental yield and return on investment
• Future development plans that might affect property values
Utilise professional property reports to make informed decisions about your investment.
Property Investment Strategy and Negative Gearing
Developing a clear property investment strategy helps guide your decisions about loan features and property selection. Many investors benefit from negative gearing, where rental income is less than property expenses, creating tax-deductible losses.
Consider whether you want to:
• Focus on capital growth or rental yield
• Invest in established properties or new developments
• Build a diversified investment property portfolio over time
• Eventually expand through equity release from existing properties
Working with Mortgage Brokers
Pharmacist Home Loans understands the unique financial position of pharmacy professionals. We can help you understand your borrowing capacity and match you with suitable lenders who recognise your professional stability.
Our team can assist with:
• Comparing investment loan options across multiple lenders
• Structuring loans to maximise tax benefits
• Planning for expanding your property portfolio over time
• Accessing professional rates and loan features
Investing in real estate through purchasing an investment townhouse can provide long-term financial benefits for pharmacy assistants. With proper planning, suitable financing, and professional guidance, you can build wealth through property investment while maintaining your career in pharmacy.
Call one of our team or book an appointment at a time that works for you to discuss your investment property goals and loan options.
