Good Credit Rating
Lenders want to see that they’re betting on something good. A good financial bet is someone making all your existing payments on time, such as existing loan repayments, phone bills, utility bills, credit card bills, etc.
Have your documents ready
Be as ready as you can be by filing all your electronic or hard copy bills. Having your documentation all together will speed up your application process.
Using existing equity
Do you have existing equity? For many, using existing equity as a deposit for their investment property is a popular option for first time investors.
Tax deductions
Expenses that you make for your investment property can be claimed as tax deductions to reduce your taxable rental income while you’re renting it out, and your capital gains tax.
The tax deductions you can claim for an investment property include:
- Interest on the investment loan
- Home and contents insurance and landlord insurance
- Real estate agent’s commission
- Maintenance costs
- Council rates
- Decline in value of depreciating assets
- Construction costs (“capital works”)
- Travel expenses to the property to do an inspection, maintenance or repairs
