If you’re looking to purchase an investment property, find out what we can offer to help you grow your property portfolio.
Buying an investment property
Where do I start?
Buying an investment property can be a great way to invest in your future. As with any investment, doing your research and setting clear goals on what you want to achieve beforehand can save you a lot of money and stress in the long term.
Talk to one of the team and find out how we can help grow your property portfolio. We’ll help you understand your obligations so you can make an informed decision. We can also help with options on how to manage an empty property.
Types of investment properties
An investment property is any property where you earn a rental return for at least six weeks of the year. This may include a holiday home that you rent out when you are not using it yourself.
Types of properties include
- A residential home to rent out permanently (including apartments etc)
- A Holiday home/bach rented out when not in use
What makes an ideal investment?
Is the property in a location that will be easily tenanted?
Small towns can offer up enticing property prices for investors, but you’ll need to weigh up if you’ll be able to keep the property tenanted if there are limited work opportunities in the area.
Is the property type suitable for people living in the area?
A one bedroom apartment zoned in a popular school zone may not be as appealing as a four bedroom family home. Local real estate agents can provide information on the demographics of certain areas and knowledge on what properties are being tenanted quickly.
Are there any future developments planned for the area?
A new school, transport option or conveniences such as supermarkets can all play a role in keeping your property easily tenanted, and help to determine the rental prices you can get. Developments can also hinder investments – such as highways/motorways being built close by so it’s important to be well informed on council plans too.
What can I borrow?
Getting an idea of how much you can borrow is the first step to buying an investment property. You’ll get a general idea of your price range, so you can narrow your property search within your budget.
Whether you’re choosing from a residential investment property, or even a holiday home, there is ample opportunity to invest. When assessing how much you can borrow, we’ll take into account the potential rental income you will get.
Generally, you’ll need a 40% deposit. This may be from either cash, leveraging the equity in the home you live in or another property you own.
Things to check
Before you enter into negotiations for any property, ask questions like
Has it been rented before?
How much was it rented for?
Have there been any vacancy periods?
How long it was vacant for, and why?
Once you’ve found the ideal investment property, you’ll need to organise the relevant insurance, including building and landlord protection. You may also want to organise a property management service to manage the tenancy on your behalf. This is especially helpful when you live in a different region to your investment property.
Structuring your loan
Different repayment and loan options will suit different investment strategies.
Talk to one of the team to find out what loan option would work best for you.
To think about
Whether you’re after the certainty of a fixed term, the flexibility of floating, or a combination of both, we have a range of competitive rates to offer.HOME LOAN RATES
YOUR HOME LOAN OPTIONS
When it comes to loan type and repayment plans, one size doesn’t fit all. Enjoy the freedom of a revolving credit, or make budgeting easier with a fixed home loan - whatever works best for you.LOAN & REPAYMENT OPTIONS
Align your repayments to suit your lifestyle, whether it's weekly, fortnightly, monthly or quarterly. Use our home loan calculator to see what your repayments could be.HOME LOAN CALCULATOR
HOME LOAN OPTIONS
Manage your home loan
With a little planning and some helpful home loan tools, you can shorten the length of your loan term, reduce the amount of interest you pay, and save money in the long run.
See how our home loan features can help you pay off your loan sooner.
TSB Home Loan
Start your application by providing us with your key details. We'll then contact you for any further information we might need and to discuss the next steps. You can also make an appointment with your local branch, give us a call on 0800 872 226, let our Mobile Mortgage Managers come to you – whenever and wherever suits or set up a video call via Virtual Bank and chat to us from anywhere.