A timely question, with Australia’s property market drawing investors back to open homes. According to the Australian Bureau of Statistics the number of new investor loan commitments for dwellings rose 3.5% in the June quarter, compared to 0.9% for owner-occupiers[i]. Moreover, it’s not hard to see why this is happening.

With three interest rate cuts in 2025, and rental demand remaining exceptionally strong in our capital cities and regional growth hubs, the stars are again aligning for investors.

At the same time, more Australians want greater control over how their retirement savings are invested. This is driving increased interest in property and contributing to the growing popularity of self-managed super funds (SMSFs), which now hold around $1 trillion, nearly a quarter of Australia’s $4.3 trillion superannuation sector[ii].

An SMSF is a private superannuation fund that you manage yourself, allowing you to choose your own investments, such as residential or commercial property, rather than relying on the investment decisions of an industry or retail super fund.

Buying an investment property is the same but different

While the process of purchasing an investment property may resemble buying a home to live in, the motivation and, therefore, the decision-making process, are different.

When you’re buying your own home, it’s about lifestyle and what suits your family. However, when you’re purchasing an investment, it’s about what features best benefit the tenant. For example, a two-bedroom apartment close to a university or CBD might appeal to students or young professionals. Alternatively, a larger family-style home in the suburbs might suit long-term renters seeking access to schools, parks, and public transportation.

Matching your property type to the likely tenant base also reduces vacancy periods, a key issue you don’t need to worry about as a homeowner.

Talk to a local Raine & Horne Property Manager early

Before you buy, take the time to speak with a property specialist in the area where you plan to invest, such as your local Raine & Horne Property Manager.

They can share valuable insights on what’s renting well, vacancy rates, average yields, and even what other successful investors are doing. They can also help you understand compliance requirements and minimum standards for rental properties, which vary by state.

Get your financial foundations right

Beyond the purchase price, investors should prepare for ongoing costs and cash flow factors such as:

• Strata fees (for apartments and townhouses)
• Land tax (for houses)
• Insurance, maintenance and compliance costs

With an investment property, landlords can claim these expenses, and more, as tax deductions. An accountant can help structure your purchase effectively and identify all eligible deductions to maximise your return.

Unlike a family home, investment properties offer tax additional benefits such as claiming depreciation, or “wear and tear”, on the building’s structure, fixtures, and fittings. These deductions can help offset your rental income and improve your overall return.

To help maximise your tax position as a landlord, you’ll need a depreciation schedule from a specialist like BMT Tax Depreciation.

And don’t forget to compare lenders, as some charge slightly higher rates for investment loans. It pays to shop around with the help of a finance specialist, such as Our Broker.

At the end of the day, investing in bricks and mortar can be one of the most rewarding financial decisions you make, provided you do your homework.

To find out more about investing in a particular suburb or regional area, be sure to reach out to your local Raine & Horne Property Manager.

[i] https://www.abs.gov.au/statistics/economy/finance/lending-indicators/latest-release

[ii] https://www.superguide.com.au/smsfs/smsf-statistics