Investing in property
Set your investing goals
Are you planning to supplement your income with a rental property, use negative gearing for tax benefits, or are you aiming to make a profit from the property's capital growth? As a first step, it is important to decide on your goals. This will help you decide on whether real estate is an appropriate investment option for you, as well as what type of property you would invest in.
Create a plan for the long term
Investment properties may have capital growth or depreciation, so you'll need to think about where you can afford to buy and whether a property has the right features to appeal to both renters and buyers.
What about using existing equity?
You may be able to use the available equity in your current home to help you buy your investment property. Using equity will not be suitable for everyone, and it is important to understand both the risks and benefits before deciding on this option.
An investment loan can be used where your property securing the loan will be used to derive rental income or where the loan purpose is to invest in real estate. You have the option to select a fixed rate or standard variable rate, and you could also take up an Advantage package deal.
You may also consider a line of credit through a Portfolio Loan, which allows you to use the equity in your home to make other investments. A line of credit enables you to diversify and manage your investments, with separate sub-accounts for each investment.
What about investing as part of my super?
If you have a Self Managed Super Fund or considering establishing one, you might be ready to explore purchasing property using borrowed funds as part of your overall SMSF investment strategy. You should seek your own independent financial, tax and legal advice before borrowing to invest within an SMSF.
Once you've started thinking about these, our home loan specialists can explore options with you. We can also help you choose the right investment option and assist with financial planning.
Start your journey online
Learn how much you could borrow, without knowing the loan type
Receive indicative approval in under 10 minutes
A home loan expert will call to talk you through your options
Featured home loans
Advantage Package1 could offer you discounts for the life of your loan
Receive a discount on your eligible home loan interest rate and nil transaction fees on your linked Complete Freedom account (Annual fee of $3952 applies)
Advantage Package also offers access to discounts available when you take up selected credit cards, insurance and wealth products
Lock in a fixed interest rate for 1-5 years
On investment loans, choose to pay interest in advance and get 0.2% p.a. off the fixed interest rate for the interest in advance period3
Diversify and manage your investment through a Portfolio Loan
Use separate sub-accounts for investment and lifestyle needs
A BankSA home loan expert will contact you at your preferred time
Credit criteria, fees and charges apply. Before making a decision, it’s best to read the terms and conditions:
- Residential Loan Agreement - General Terms and Conditions
- Loan Accounts - Charges for specific services and accounts and
- Portfolio Loan Agreement - General Terms and Conditions and
The information on our website is prepared without knowing your personal financial circumstances. Before you act on this, please consider if it’s right for you. If you need help, call 13 13 76.
The information on this page has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and, if necessary, seek appropriate professional advice. The taxation position described is a general statement and should be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation. Bank of Melbourne - A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714
1. Discounts on products apply at time of application when you tell us you’re an Advantage Package customer
2. Advantage Package Conditions of Use and Terms and Conditions apply and are available at www.banksa.com.au. Annual fee, currently $395, applies.
3. A discount of 0.20% p.a. will apply only if the interest in advance amount is automatically deducted from a BankSA transaction account.
The Bank will apply the fixed rate that is available at the loan settlement date or the date the fixed rate period commences, unless the customer locks a fixed rate in on the loan using our Rate Lock feature. The Rate Lock fee is 0.15%p.a. of the loan amount or $500, whichever is higher, capped at $1000 for loans up to $2mil. For loans above $2mil, the Rate Lock fee is 0.15%p.a. of the loan amount. After fixed period, rate reverts to applicable Standard Variable Rate. Excludes internal switches and portfolio Loans.