Tags: InvestmentMarket Update | 03.11.10

Benefits of Investing in the Australian Property Market

Both Australian citizens and property investors from other countries have discovered that Australia has one of the most stable and strongest property markets. There are tax deductions available to help you save money when investing in property, home loans designed for property investors, and a number of other benefits unique to the Australian property market.

Benefits for Investors of Australian Property

From tax deductions on investment properties to the cheapest home loans – there are many benefits to investors of Australian property.

Property Market Consistency – every country experiences fluctuations and cycles with their property markets. In Australia, over the last forty years, you'll find the property market has been increasing. Some property values have doubled in value in a period as short as 7 years, while the average rate of the property market is an increase of 7% per year. As an investor, you can see how obtaining home loans for investment property in Australia offers a stable market from which to grow your investment and earnings over time.

Home Loans Offer Interest Deductions – The interest charged on your home loan is tax deductible, offering many investors a large deduction at tax time and reducing the amount of tax they owe the government.

Renovation Tax Deductions – when you make renovations to Australian investment property, you can deduct most of the money spent over a period of 40 years.

High Demand Means Higher Rent – in some areas of Australia, property is in such high demand that property investors can charge higher rent prices than the amount of their monthly home loan payment. This allows an investor to begin profiting from their investment as soon as the property is rented out.

Home Loans for Investors in Australia

If the stable market, high demand for properties and variety of tax deductions make you want to invest in property in Australia, you'll find there are hundreds of home loans available for property investment. While each investor will have their own unique needs for home loans, and what they consider to be the best home loans, you will find a mortgage product suitable for your situation. You may want to use a property investment mortgage broker to help guide you through all of the various home loans available for investors, so you can be sure your selecting the best home loan and rates for your needs.

Previously, it used to be difficult for someone to qualify for investment home loans. Banks required a minimum of a 20% deposit and documented evidence of your financial ability to repay – which was sometimes difficult to produce. Banks have tight criteria and expectations for what makes a “good borrower”; and if you didn't meet those exact specifications, you would have a hard time getting approval for a home loan.

The current lending environment

Property investing has changed, as has the home loans market in Australia - making it easier for investors to borrow higher amounts of money and at excellent interest rates. Some non-bank home loan lenders will even allow some investors to borrow more than the value of an asset (for the purpose of home renovation, for example). Take some time to do your research and home loan comparison of various mortgage products for investors, and find one that matches your needs.

Back « Family Pledge or Guarantee for Australian Home Buyers
Next » Third Quarter Improvement in Australian Housing Affordability

Keep your info all in one place

Your Tomorrow Finance Customer Account is a hub for your home loan journey. From saving products you’re interested in to viewing your application progress. Enter your email to receive the link to your account.

By clicking Send Me My Link, you agree to our Terms of Use and Privacy Policy

Leave a comment


Leave a comment

Non Bank Home Loans

I could say that it is really a wise decision to invest your home properties in the Australian property market. Knowing all its benefits, you will be assured that your investment is safe. Investing will make it easy for you to apply for loans. What is also good in this, you can ask for assistance from some non-bank home lenders, they can give you good a offer with high interest rate.

Melbourne Property

Interesting article. The Australian property market is definitely one of the most stable in the world. It's certainly performed extremely strongly in the post-GFC environment. While options such as greater than 100% loans are no longer available, it's still possible to access affordable mortgage finance for solid property investments that will perform well long term.

Tiger Baker

Why Buy Australian Property?

  1. Long term stability
  2. Nation of property lovers
  3. High proportion of homeowners - 65% compared to US 50%, Germany 40%
  4. Strong demographic shift
  5. National undersupply
  6. Pro-property tax system
  7. Minimal exposure to sub-prime mortgages
  8. Strong banking sector


Past performance is no indication of future appreciation, especially when housing prices become relatively more and more expensive as a ratio to personal income.

Ly dane

Dear sir,madam,

I am very interested in investment on property in Australia..pls give me some advise and informations ..

How to get loan from the bank for property invstor non Australian what are the requirment from the bank ?

I interested in buying apartment for rent good business area..student hostel,or student apartment ..boarding house motel ..I need to study further about the investment cost and support from bank loan..

Your sincerely

Ly dane