Whether you're stepping onto the property ladder for the first time or expanding a multi-property portfolio, understanding your borrowing capacity is an essential first step.
With interest rates stabilising and rental demand remaining strong, you might be closer to purchasing your next property than you think.
Tailored support for every investor
We support members at every stage of their property journey - from those exploring their first investment to experienced investors expanding their portfolios. Our focus is on helping you build a resilient foundation for long-term financial wellbeing.
Multi-property portfolios: strategy matters
Many of our members own multiple properties. However, expanding your portfolio requires careful planning. Key considerations include:
- Loan structuring: Ensure each property is financed in a way that supports your overall strategy
- Risk management: Avoid overextending by stress-testing your finances against interest rate changes and vacancy risks
- Equity recycling: Use the equity in existing properties to fund new purchases without needing fresh capital
- Diversification: Consider regional markets and emerging suburbs with infrastructure growth for better returns.
A well-structured portfolio can act as a safety net, with each property supporting the others through market fluctuations.
Getting started: first-time investors
Your first property doesn’t need to be your forever home - and for some, an investment property can be a more accessible entry point. Investment properties can:
- Require fewer personal preferences (e.g., location, layout)
- Offer better rental yield opportunities
- Allow you to leverage tax benefits like depreciation and negative gearing.
However, it’s important to be aware that choosing an investment property as your first purchase may mean missing out on First Home Buyer (FHB) grants and stamp duty concessions. We’re here to guide you through every step of the decision-making and loan process, helping you weigh the options that best support your long-term financial wellbeing.
Borrowing capacity: what you need to know
Your borrowing power is influenced by:
- Income and expenses
- Credit score and debt-to-income ratio
- Deposit size and equity in existing assets
- Rental income.
Tips to improve borrowing capacity:
- Reduce credit card limits and personal debt
- Increase income through rental or secondary streams
- Consolidate liabilities to improve cash flow.
Tax implications and lifestyle considerations
Investing in property comes with both financial and lifestyle impacts. Some key tax considerations can include:
- Negative gearing: Offset rental losses against other income
- Capital gains tax (CGT): Payable on profit from property sales, with discounts for long-term holdings
- Depreciation: Claim deductions on wear and tear of assets and construction
- Land tax: An annual state charge on investment or non-owner-occupied properties, based on the land’s value
- Record keeping: Maintain detailed documentation to maximise deductions and stay compliant.
We recommend seeking personalised financial advice to ensure your investment decisions align with your broader financial goals.
Ready to take the next step?
Whether you're buying your first investment property or restructuring a multi-property portfolio, we're here to help. Reach out to our BankVic Home Loan Mentors to explore how we can help support your journey toward long-term financial wellbeing.
We’re here to help
If you have any questions about how investing in property can support your long-term financial goals, visit bankvic.com.au/home-buying/investor, call 13 63 73 or visit www.bankvic.com.au/book-appointment to make an appointment with a BankVic Home Loan Mentor.
