BSB 806 015

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BSB 806 015

Buy an investment property

Step 1: Getting started with a property investment

The State Government predicts WA’s population will rise to 3 million people within the next 10 years. That’s an extra 500,000 people and they’re all going to need somewhere to live.

When investing in property, it pays to think long term. Successful investors know property is not about getting rich quick, it’s about getting rich over time.


Shares can be very volatile. Even so called ‘blue chip’ companies can become worthless (just ask anyone who had Bell Resources shares in the 1980’s). Property can be more stable. You can see it and touch it! It may go down but it can’t disappear.

Tax Benefits

You can take advantage of tax benefits like negative gearing. Many property related expenses are tax deductible and can help minimise your tax bill. Ask your accountant for the latest tax rulings and to check on your potential tax impact.

Rental Income

The great thing about investing in property is your tenants help pay off your loan. If the rent you receive is greater than your loan repayments, you also have a passive stream of income.

Capital growth

Be careful with renovations or alterations - so you do not over capitalise.

Step 2: Deciding where and what to invest in

The first thing you need to decide is do you want to invest in residential or commercial property? There are pros and cons to both.

Your next consideration is the biggie: location, location, location. So what should you look for? Areas that are much cheaper than the surrounding suburbs are good bets for growth. So too are areas with scheduled developments like the extension of the train line, new amenities or infrastructure. Contact the local council to find out what is in the pipeline. Areas with a built-in rental demand, like those near universities and hospitals, will ensure you don’t have trouble attracting tenants.

Do your homework, check out relevant market reports and visit other home opens in the area so you learn how to identify a bargain when you see one.

Step 3: Financing your property portfolio

Finding the right property

Speak to an expert

If you don’t own any other property, the Australian Securities and Investments Commission (ASIC) suggests you have a deposit of around 20% of the property’s value.

Of course they’ve never chatted with P&N Bank’s friendly loans people who love finding ways to help members on to the property ladder.

Contact us today

How much can you afford?

If you already own your own home, you should be able to harness the equity you’ve built up to help build your property portfolio.

Interested in finding out how much you can afford to borrow?

Try our Home Loan Borrowing Power Calculator

Step 4: What’s the right loan for me?

If you have questions, we have the answers

Do you choose a variable or fixed rate? Interest only or interest and principal? Our qualified financial planners will work with you to help you find the most suitable home loan for your investment.

The great advice will be backed up by a great rate. Because P&N Bank is member owned, we can do things the big banks can’t.

We're flexible

You decide what’s the best way for us to work together:

Step 5: Do I really need a property manager?

Well maintained properties are more likely to attract well behaved tenants. If you have the time and patience, you can save money and manage the property yourself.

Where a good property manager earns their keep is in doing a thorough background check on potential tenants. They have access to rental data bases and can help you avoid the kind of dodgy tenants that end up on ‘A Current Affair’. The property manager will deal with all complaints, ensure your place is well maintained and co-ordinate any necessary repairs.

Alternatively, you can use a property manager to find your tenant and then manage the property yourself. Which ever way you decide to go, a good insurance policy will ensure your investment is safe. We can help you with access to that too.

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