Choosing your investment property team
Property investing is about who you know and what you know.
Your property investor dream team
Surround yourself with professionals to access a tailored rate, tax advice, knowledge, property research, off-market viewings and more.
Your Westpac lender
Talking with an investment home loan expert early on is valuable. Your lender (or mortgage broker) can help you understand:
- Your borrowing power, equity and LVR
- What your interest rate and finance could look like if you adjust your loan structure/s, and close out other debts
- Our basic variable rate, fixed rates, and your specially tailored variable rate with offset
- The perks of packaging#, including discounted Landlord Insurance1 and credit card rewards
- Cross-collateralisation and equity – more than one property can be secured against each loan
- The pros and cons of freeing up cashflow, by opting for up to 10 years of Interest Only repayments2
- The option to redraw* from your fixed loan during the fixed term to free up cash flow
- A fixed interest rate discount for paying 12 months’ Interest Only in Advance3
- Your property shortlist: we may not lend against some addresses and investment properties (very small units, certain suburbs or apartment blocks, tiny houses, hobby farms and places near large power lines).
As your one point of contact, your Westpac lender could help organise:
- Conditional approval, so you can confidently bid or make an offer
- A bank valuation: online, or on-site by an independent valuer
- Full approval
- Finalising your loan docs
- The settlement process
- Tweaking your loan, as and when you need.
Your tax adviser
The tax positions described here are general statements and should not be used as tax advice or a tax guide.
While working out your strategy, have a chat with your registered tax adviser or financial planner about the tax implications of:
- Property investment gearing options
- Opting to take up an interest rate discount for paying 12 months’ fixed Interest Only in Advance3
- Putting your excess money in your loan account versus an offset account (your loan interest will reduce by the same amount, whether you park spare money in your loan’s redraw facility4 or a linked transaction offset account5)
- The Capital Gains Tax concession
- Interest Only vs Principal & Interest repayments
- The loan structure, e.g. buying in your name, your partner or adult child’s name, in a family trust (changes made after signing your loan contract could delay settlement).
Your conveyancer, lawyer or solicitor
They’re able to:
- Review your purchase contract, go through the conditions with you, iron out any kinks before you begin negotiations (e.g. a 30-day settlement might prove too short)
- Highlight if the property is on Torrens, strata or company title
- Arrange and check a strata report
- Review your loan documents before you sign
- Arrange the entire property transaction
- Organise and lodge any stamp duty concessions
- Book a settlement date, and tell you how your payments are to be distributed (amount, payee for the cheques).
It's worth checking in with your legal agent before signing any contracts, as post-settlement changes could involve extra costs.
Hiring a buyer’s agent
Not to be confused with a real estate agent, a buyer’s agent is a property-buying professional who you can choose to hire as part of your team. They represent your best interests as the buyer, and specialise in searching for, scoping out and evaluating real estate and the property market. Not to mention negotiating with the owner or bidding at auction on your behalf.
Their clients can include property investors, interstate buyers and first home rentvestors looking for the best price and a competitive edge.
Property managers
When you lack the time or inclination to manage the place yourself, hiring a good property manager can be the way to go. Check reviews of at least three property managers (they’re normally also licenced REAs), compare the fee structure and find out how they’ll market and maintain your property, make repairs and collect rent. Then engage the right person at least 4 weeks before settlement. They can:
- Place a premium listing and virtual walk-through
- Screen tenants and pair you with good tenants
- Help negotiate a fair price with your tenant
- Carry out routine property inspections
- Engage with reliable trades people
- Advise on dispute resolution.
Other
Real Estate Agents
Even though REAs represent the vendor, and not you, there are advantages to building a good relationship. REAs can place you on exclusive databases to view off-market properties and entertain pre-auction offers. And they may be well-placed to manage your rental property.
Land surveyor
Works out the land and property boundaries, confirms fence lines and can unearth subdivision restrictions and construction easement issues (pipes, sewerage etc).
Quantity surveyor
They’ll estimate the construction cost of a new build, and may also be qualified to calculate the depreciation of your property’s value.
Architect & licenced builder
It's worth checking reviews and getting several quotes. Before construction your licensed builder, often with help from your lender, prepares a document outlining the total build cost.
Talk about a sweet rate
One conversation could save you 1000s
Book an appointment now or start applying online and a lender will be in touch. As part of your team, they can tailor a variable investor rate with offset, just for you.
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Investment property hub
Advanced tools, what to expect, a tailored rate and guides for first-timers and the seasoned real estate investor.
How can I track my potential tax relevant transactions?
Our tax organiser tool lets you mark, track and export possible tax-relevant transactions in the Westpac App. Search 'tax organiser' to get started.
How do tax advisers and financial planners differ?
Your tax adviser can offer advice on tax and property ownership structures. If they have an AFS license, they have the ability to advise on your investments and strategy too.
A financial planner (AKA financial adviser) can craft a unique investment strategy based on your life stage, financial position, market conditions, risk profile, investments, property portfolio, family circumstances and future plans. Some may also be qualified to offer tax advice.
Things you should know
Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.
This information is general in nature and has been prepared without taking your personal objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice.
The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation.
Taxation considerations in this publication should not be interpreted or used as tax advice or a tax guide.
#Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.
Premier Advantage Package Conditions of Use (PDF 295KB)
1Home and Contents Insurance: Premier Advantage Package customers may be eligible for an ongoing premium discount of up to 10% on their Westpac Home and Landlord Insurance policies. If you are also eligible for a combined or other policy discount, Allianz will apply the Package discount to the already discounted premium. This means the effect will be reduced. If you purchase your policy online, the Package discount will be applied after purchase and Allianz will inform you of your revised premium (this may take up to 3 months). Allianz will then provide a refund for premium paid annually or provide a pro rata refund and reduce your remaining monthly instalments. If you take out a Premier Advantage Package after your policy has been issued, then the Package discount will apply from your next renewal. Any discounts may be subject to rounding and do not apply to taxes or government charges.
Home and Contents and Landlord Insurance are issued by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708 (Allianz). Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 arranges the insurance under a distribution arrangement with Allianz Insurance, but does not guarantee the insurance. This information does not take into account your personal circumstances. Before making a decision, please consider the relevant Product Disclosure Statement. For more information call Westpac on 1300 650 255. If you take out Home and Contents or Landlord Insurance with Allianz the Bank will receive a commission of up to 12% of the premium (exclusive of GST). A target market determination has been made for this product. Please visit www.westpac.com.au/tmd for the target market determination.
2Interest Only repayments: Conditions apply. It’s important to understand that interest rates for loans with Interest Only repayments are higher. Your repayments will increase at the end of the Interest Only term as the amount you’ve borrowed will need to be paid back in a shorter timeframe. This also means you’ll pay more interest over the life of the loan with an Interest Only repayment term, than if you’d opted to continue paying principal and interest. There’s a maximum of 5 years for Owner Occupied loans and 10 years for Investment loans on Interest Only repayments over the life of the loan. If you’ve had less than this, you may be able to extend the Interest Only repayment term, subject to conditions and a new assessment. You’ll need to start the process well in advance of your expiry date and provide details of your income, expenses and liabilities.
3Interest Only in Advance: Interest must be paid in advance annually for each chosen fixed rate term to receive this rate. If after the first year of a fixed rate term interest is no longer paid in advance the Interest Only in Advance discount will be removed for subsequent years.
Interest Only in Advance interest rates are available on Fixed Rate Investment Property Loans with fixed rate terms of 1, 2, 3, 4 or 5 years.
Interest Only in Advance interest rates and discounts apply to new Fixed Rate Investment Property Loan and loans which have been switched into Interest Only in Advance products. Existing fixed loans are not eligible unless the loan is re-fixed. Interest Only in Advance discounts are subject to change. Subject to Bank's approval. Normal lending criteria apply. Other conditions, fees and charges apply.
4Redraw facility: if you have 'available funds' (you've made extra home loan repayments) and you've activated your redraw facility, you're free to redraw them with no redraw fee. Up to $100k will be available to redraw from your variable loan online or over the phone each day (unlimited in-branch). For fixed loans you can redraw up to your prepayment threshold during your fixed term. Read our Home Loan Redraw Authority form (PDF 66KB) for full details.
5Offset is available on a Rocket Repay Home Loan or a Rocket Investment Loan. You can link multiple offset accounts to a loan account, but each eligible offset account can link to just one loan account. If any named account holder of a transaction account is not a borrower on the loan account, the loan account cannot be linked to that transaction account.