Mount Druitt, St Marys, Penrith and Rooty Hill are popular with first-time investors because entry prices are lower than many other parts of Sydney. Whatever you buy, the loan structure determines how easily you can grow from here.
The checklist
- Deposit or equity. Most investors need 10–20% plus costs, or use equity from their home. See using equity to buy an investment property.
- Borrowing power. Lenders count only part of the expected rent. Test your position with our borrowing power calculator and read how lenders assess borrowing power.
- Interest-only or principal and interest. Interest-only lowers repayments for a period; principal and interest reduces the debt. Your accountant can advise on the tax side.
- Separate loans. Don't mix investment and personal borrowing in one account.
- Offset, not redraw. See offset vs redraw.
- Cash flow buffer. Allow for vacancies, repairs, strata, insurance, land tax and rate rises.
Choosing lenders for growth
If you plan to buy more than one property, lender choice matters. Spreading loans across lenders can protect borrowing capacity and avoid cross-securing properties together. We plan this with you from the first purchase.
Units vs houses
Units cost less to enter but some lenders are stricter on small or high-density properties. See our guide to apartment lending rules.
Questions to ask before you buy
- What's the realistic rent, and how long do similar properties take to lease?
- Are there strata issues, special levies or building defects?
- What will the lender's valuation likely be?
- How will this purchase affect my next one?
Don't let one purchase block the next
The way your first investment loan is set up can limit your second. We map out a two- or three-purchase plan with you so the lender and structure you choose now support where you want to go.
Plan your first investment
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