Things to consider when buying an investment property

Our experts discuss the key factors to remember when buying an investment property in Australia. This includes property investment tips and offers suggestions on how to invest in property across such topics as location, financing and design considerations. With great offers on home loan rates, State Custodians has low rate home loans for all levels of property investors.

The Presenters:

  • Veronica Morgan - Principal of Good Deeds Property Buyers and Co-host of Location Location Location Australia
  • James Treble - Television Presenter and co-founder - Interior Design for Profit
  • Joanna Pretty - General Manager State Custodians Home Loans
    1. Joanna Pretty – General Manager State Custodians Home Loans
      One of the things we want to think about, what we want to make sure about, is if the investment is returning something to us. There are a lot of people who invest with their heart and often people choose to buy something because they’re ultimately seeing the picture at the end of their career - it might be where they want to retire.

      And that’s okay too if they’re thinking it’s not necessarily going to make them money, so investing with your heart is not a bad idea too. It’s part of a long-term plan.

    1. Veronica Morgan, Principal of Good Deeds Property Buyers and Co-host of Location Location Location Australia
      But are you thinking about, okay I want to relocate to the country, I want to relocate to the coast. I would encourage you not to buy that property now because a sea change or tree change property is not going to go up in value as an investment as opposed to say an investment in a capital city like Sydney or Melbourne.

      I mean, a carefully purchased investment will go up a hell of a lot more in the time between now and when you relocate. If you buy well and purely something as an investment, down the track you can buy something that’s a hell of a lot better in some of those areas.

      You have so many more options. You might move to Torquay, rather than lock yourself in. You can make your money work harder for you in the short term and you can buy something better when you retire.

    2. James Treble - Television Presenter and co-founder - Interior Design for Profit
      Funny where you’re going with that conversation versus that emotion, because something in between may be an option as well. To understand the area that you’re looking at, if you’re in the demographic of the big baby boomer age group, those people will look to change to these coastal cities.

      Outer parts of Sydney, Newcastle and Wollongong are getting that coastal flow-on change for people with money. You can’t afford to buy a waterfront property in Sydney’s prime spots and that’s happening around the country as well.

      I think it’s a little bit of in between. Look with the emotion of maybe planning ahead but don’t go too literal with ‘I want that city or town’ because as you say investment growth areas are quite different. I think it’s worth looking at where big development is going on – a new big hospital, and employment can affect your investment. For me it’s going back to what’s visual as well and it’s still looking at a property as to what I can enhance and how can I alter its value straight away.

    3. Joanna Pretty – General Manager State Custodians Home Loans
      I think it’s definitely a life stage. So I definitely agree with you in terms of people starting out who wouldn’t have a clue really where they’re going to end up. I see a lot of customers come through and I speak to a lot of people who are sort of baby boomers, who can’t exactly afford to live in Sydney but they need to live there and are choosing to rent. But then they ultimately have to invest and figure to ultimately where they’re going to end up. I think that accommodating and catering for that at that stage of life is something we see quite often.

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