Property investment remains one of the most popular wealth-building strategies in Australia. But before diving into the market, it’s important to understand how investment loans work and what to consider when choosing the right loan.

Investment home loans differ slightly from owner-occupied loans. Many investors choose interest-only loans in the early years to reduce their repayments and improve cash flow. This can be especially helpful if you’re renting the property out and aiming to offset the costs with rental income.

However, interest-only loans don’t reduce the principal balance, so it’s important to have a long-term repayment strategy. You can also choose principal and interest options if you’re focused on paying down the loan while growing your asset.

Another key factor is negative gearing, which allows you to claim deductions on property expenses, including interest paid on the loan. This can reduce your taxable income and boost your return — though it’s always best to get advice from an accountant.

Loan features such as offset accounts, redraw facilities, or flexible repayments can give you more control over your investment. It’s also crucial to consider the loan-to-value ratio (LVR), as many lenders require a 20% deposit for investment loans.

At Reachable Finance, we help you evaluate your investment strategy, compare loan options, and choose a structure that supports your goals — whether you’re buying your first rental or building a portfolio.