Investing

Building a successful investment strategy means having the right experts in your corner. An experienced accountant can help structure your investments tax-effectively, while a financial planner works with you to set long-term goals and create a diversified strategy. A mortgage broker is key to securing the right finance and accessing equity for future investments.

If you’re buying property, a solicitor or conveyancer will handle legal matters, and a property manager can oversee tenants and maintenance. For added support, a buyer’s agent can help you find quality properties, while a quantity surveyor can prepare tax depreciation schedules to boost returns. With the right team, you’ll make more informed, profitable investment decisions.

Make every investment move count by following these key principles:

Set clear financial goals

• Know whether you're investing for capital growth, passive income, or long-term wealth building.

Understand your risk tolerance

• Choose investments that align with how much risk you're willing — and able — to take.

Diversify your portfolio

• Don’t put all your eggs in one basket. Spread investments across property, shares, ETFs, or other asset classes.

Research thoroughly

• Look into market trends, economic forecasts, and the long-term performance of the asset before committing.

Know your investment timeframe

• Short-term gains and long-term growth require different strategies — plan accordingly.

Review your borrowing power

• Understand how much you can safely borrow and how it impacts your overall financial position.

Factor in all costs

• Include purchase fees, taxes, maintenance, interest, and exit costs in your calculations.

Work with professionals

• Seek advice from brokers, financial planners, and accountants to ensure your strategy is sound and tax-effective.

Monitor and adjust

• Track performance regularly and be ready to pivot if market conditions or your personal circumstances change.

Before diving into an investment property, it’s crucial to understand your borrowing capacity and the true costs involved in taking out an investment loan. Your borrowing power is influenced by your income, existing debt, credit history, and the potential rental income from the property. Investment loans may come with higher interest rates, different deposit requirements, and stricter lending criteria than owner-occupier loans.

Beyond the loan itself, you’ll also need to budget for stamp duty, legal fees, loan establishment costs, property management, maintenance, insurance, and possible vacancy periods. By having a clear picture of what you can afford and all the upfront and ongoing expenses you can make smarter, more sustainable investment decisions. Working with a mortgage broker or financial adviser can help you navigate these factors and choose a loan structure that aligns with your long-term strategy.

Choosing the right investment loan starts with understanding your long-term financial goals and how the loan structure can support them. If your aim is to maximise cash flow in the short term, you might consider an interest-only loan, which lowers your repayments and may improve tax efficiency though you’ll need a clear strategy for paying down the principal later. If building equity is your focus, a principal and interest loan could be more suitable, as it steadily reduces your debt over time.

You’ll also want to decide between variable, fixed, or split-rate loans depending on your need for flexibility versus certainty. Features like offset accounts, redraw facilities, and the ability to make extra repayments can make a big difference over the life of the loan. Setting up the right loan type involves balancing affordability, flexibility, and long-term strategy, so it’s worth working with a mortgage broker to match the loan to your specific investment goals.

Planning for future investments starts with choosing the right investment loan structure from the beginning. If your goal is to build a portfolio, it’s important to preserve your borrowing capacity by managing cash flow carefully and avoiding overextending on your first purchase. Strategies like using interest-only repayments, setting up offset accounts, and keeping equity accessible can give you more flexibility to invest again.

Selecting a lender with favourable policies toward investors and understanding how your debt will affect future serviceability is also crucial. Each loan decision you make today can either support or limit your ability to grow your portfolio down the track so it pays to plan ahead, stay financially organised, and work with professionals who understand how to scale an investment strategy.