Residential property includes houses, apartments, and townhouses — the most common form of property investment in Australia. These types of properties are often seen as a starting point for many investors due to their familiarity, accessibility, and the strong housing demand in Melbourne and Sydney.
At LoanBrix, we help investors understand the key advantages and potential challenges of residential property so they can make informed, confident decisions.
Tax benefits: Residential investors can claim deductions on expenses such as loan interest, maintenance, and depreciation, helping reduce overall tax liability.
Rental income: Leasing your property provides a steady income stream that can assist in covering mortgage repayments.
Capital growth: Property values in Australia generally trend upward over time, offering potential long-term gains.
Higher loan-to-value ratios: Lenders typically allow higher borrowing amounts for residential property compared to commercial investments.
Lower interest rates: Residential loans often attract more competitive interest rates than other types of property finance.
Interest rate fluctuations: Changes in the lending market can affect repayment amounts over time.
Vacancy periods: Finding reliable tenants can sometimes take longer than expected.
Tenant issues: Difficult tenants or property damage can lead to unexpected costs and stress.
Market variability: Property prices can stagnate or decline in the short term, even within strong markets.
Borrowing limits: Investors may reach their borrowing capacity after a few purchases, limiting further investment opportunities.
At LoanBrix, our goal is to help you carefully weigh these factors and develop a strategy that aligns with your financial goals and risk tolerance. By understanding both the rewards and risks, you’ll be better equipped to make sound decisions and grow your investment portfolio sustainably.
We have relationships with all the major financial institutions and are constantly reviewing new and innovative loans to help provide you with the best possible solution.
We have over one hundred 5 Star ratings from clients on our Google business profile. We pride ourselves on customer service, and aim always to provide the best possible experience.
To become a member, individuals must meet specific requirements, including professional qualifications, a good character, and holding an Australian Credit Licence (ACL) or being a Credit Representative.
Yes! You can use your home equity in place of a cash deposit to buy an investment property. If you have questions on how you can do this, don’t hesitate to speak with one of our brokers.
For your investment property loans, you can expect costs that vary. You will need to save a deposit, which we recommend be at least 20% (avoiding the lender’s mortgage insurance), along with the repayments of the loan itself. This will depend on the lender you choose, but Mortgage Broker Melbourne is sure to get you the best deal on your loan. Additionally, there are often loan establishment fees that your lender will charge for processing the documentation. Ongoing loan fees and interest payments are also costs to consider, as they are the ongoing costs of loans. You should also look out for property loan break costs if you opt for a fixed loan; they only apply when leaving the loan before the fixed-rate term ends. However, we don’t charge any fees for our service! We will provide you with expert advice to ensure you get the most out of your investment property loan.
LoanBrix® is an Authorised Credit Representative 367121 under Australian Credit License 384704. ABN: 91 136 505 845 GCorp Finance Pty Ltd.
