Getting Started With Property Investment

woman checking out a property with an engineer

The uncertainty of the past couple of years has led many of us to reassess our financial goals. One way people are looking to take control of their financial future is through buying an investment property.

If you’re thinking about investing in property, it’s important to understand how the process works as well as the potential benefits and the risks involved. Here are some of the things to consider before you get started. 


Appeal of investing in property

The appeal of investing in property

If long-term investment is something you are interested in, property investment could be an option. It could, for example, earn you a rental income and you may benefit from capital growth.

You may also reduce the amount of tax you pay, by offsetting some investment property expenses you have incurred against your income. In addition, by building up equity over time (the difference between how much you owe and what your property is worth) you might use this to buy another property or renovate your existing one

Potential risks of property investment

The potential risks of property investment

Any form of investment has some uncertainty and borrowing to fund an investment property has an added level of risk to it. 

Rental income – rental income is not always guaranteed. There may be times you have a longer gap between tenants due to unexpected repairs or market changes – such as shifts in supply and demand. During COVID rental yields dropped across the country and borders remained shut and migration was put on hold.
The highs and lows of the market – a rise in interest rates or market changes may affect the value of your property, your mortgage repayments, disposable income and any potential profit margins. 

What is an investment loan and how does it work? 

Property investment loans allow you to borrow money to invest in land, houses, apartments or commercial property. These loans work a bit differently to a home loan for a property you intend to live in. As an investment in property may generate income for you, that income may be factored into your ability to pay back the loan. Investment loan rates are usually higher than home loans, as the risks for the lender are higher as well. 


Tips on how to apply for an investment loan 

Traditional lenders could have strict eligibility criteria for investment loans. If you don’t meet the banks’ criteria because you’re self-employed or have previous credit issues, Pepper Money may be able to help. We help all sorts of people from those with irregular income - like the self-employed, through to people who have previous credit issues. The process for applying for an investment loan with Pepper Money is simple. We encourage you to have a chat with one of our Lending Specialists, so we can understand your situation and find you the best possible solution. 
It’s a good idea to have your documents on hand to help speed up the process: 

  • Most recent group certificate 
  • Most recent tax return / taxation notice 
  • Current letter of employment 
  • Bank statements – to confirm last 3 months’ salary 


If you're keen to get started with property investment, speak with one of our lending specialists on 0800 166 330 or enquire online.

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You are protected by responsible lending laws. Because of these protections, the recommendations given to you about home loans are not regulated financial advice. This means that duties and requirements imposed on people who give financial advice do not apply to these recommendations. This includes a duty to comply with a code of conduct and a requirement to be licensed.

All loan applications are subject to the lender completing responsible lending checks and considering the borrower’s individual circumstances. Terms, conditions, fees and charges apply. Information provided is factual information only and is not intended to imply any recommendation about any financial product(s) or constitute tax advice. If you require financial or tax advice you should consult a licensed financial or tax adviser.

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