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Build wealth
through property.
We'll fund the plan.
From your first investment property to a multi-asset portfolio — our specialist brokers structure loans to maximise tax benefits, cash flow and long-term returns across 90+ lenders.
*Indicative rate only, subject to change. Credit criteria, conditions, fees and charges apply. Not all applicants will qualify.
The three ways property builds wealth
Unlike most asset classes, investment property delivers returns across three simultaneous channels — growth, income and tax savings.
Capital Growth
avg. gain on $700k property over 7 years (Brisbane)
Residential property doubles in value roughly every 10–12 years historically
Strong population growth in SE Queensland, Perth and Adelaide driving demand
Limited land supply in inner-ring suburbs creates scarcity premium
Leverage amplifies returns — $140k deposit on a $700k property captures full growth
4 myths that stop Australians investing
Myth
“You need a 20% deposit”
Many lenders accept 10–15% with LMI, or 20% with no LMI
Myth
“Interest-only loans are risky”
IO is a tax-smart strategy — you deduct the full interest payment
Myth
“It's only for the wealthy”
With 10% down and rental income helping repayments, it's more accessible than people think
Myth
“You need perfect credit”
Specialist lenders exist for self-employed, unusual income structures and less-than-perfect credit
Australian property markets at a glance
Median prices, rental yields and 12-month growth by capital city. Updated Q1 2025.
Perth Market Snapshot
Q1 2025 · Indicative data
Median House
$760k
Purchase price
Median Unit
$490k
Purchase price
House Yield
4.8%
Gross rental yield
Unit Yield
6.2%
Gross rental yield
12-Month Growth
14.8%
10yr avg: 9.1% p.a.
Vacancy Rate
0.6%
Very tight — landlord's market
20% Deposit Required
$152k
for house at median
Perth suburb breakdown
8 suburbs tracked · Click a city above to switch
Cottesloe
RisingMedian price
$2.85M
Yield
2.8%
12m Growth
18.2%
Subiaco
RisingMedian price
$1.42M
Yield
3.6%
12m Growth
16.4%
Fremantle
RisingMedian price
$1.08M
Yield
4.1%
12m Growth
15.1%
Scarborough
RisingMedian price
$870k
Yield
5.2%
12m Growth
14.8%
Joondalup
RisingMedian price
$680k
Yield
5.4%
12m Growth
13.2%
Baldivis
RisingMedian price
$550k
Yield
5.8%
12m Growth
12.6%
Mandurah
RisingMedian price
$490k
Yield
6.4%
12m Growth
11.9%
Midland
RisingMedian price
$420k
Yield
7.1%
12m Growth
10.8%
Suburb data is indicative. Always verify with local property reports before investing.
View full investment analysisData is indicative and based on publicly available market research. Always conduct your own due diligence before investing.
Structure your investment loan correctly
The wrong loan structure can cost you thousands in tax and reduce your buying power for the next property. Here's what you need to know.
Interest-Only (IO)
Pay only interest each month. The principal stays flat — maximising your tax deduction and cash flow.
Rates From
Comparison rate 6.44% p.a.*
*Comparison rate based on $150,000 loan over 25 years.
Advantages
- Maximises tax deduction (interest is fully deductible)
- Lower monthly outgoings improve cash flow
- Frees capital for your next purchase
- Available for up to 5 years (extendable)
- Works perfectly with offset accounts
Watch Out For
- Loan balance doesn't reduce during IO period
- Slightly higher rate than P&I investment loans
- Need a clear strategy for the P&I switch
Best For
Maximum LVR by property type
Lender policies vary — these are typical market maximums.
| Property Type | Max LVR | Notes |
|---|---|---|
| Residential house | 80% | No LMI |
| Residential unit/apartment | 80% | Subject to size & location |
| Small apartment (<50sqm) | 70% | Most lenders |
| Inner-city high-rise | 70–80% | Lender-specific |
| Regional residential | 70–80% | Varies by postcode |
| Commercial property | 65% | Specialist lenders to 70% |
| SMSF property | 80% resi / 70% comm | LRBA structure required |
Model your investment returns
Estimate rental yield, annual cash flow, tax position and net return before you buy.
Property & Loan Details
Gross Yield
4.51%
Annual rent / property value
Loan Amount
$600,000
LVR: 80%
Annual Cash Flow Breakdown
After-Tax Cash Flow
+$1,772/yr
$34/week
Annual Tax Saving
+$4,512
Negatively geared ✓
General Information Only — Not Financial Advice
The results generated by this tool are estimates only, provided for general information purposes, and do not constitute personal financial, taxation or legal advice. Results are based on the inputs you have entered and a number of assumptions that may not reflect your actual circumstances. Consolidated Funding Group Pty Ltd trading as Fairbanks Financial Group (ACR 481272) recommends you seek independent professional advice before making any financial decisions.
Tax benefit estimates are indicative only and do not constitute tax advice. Tax outcomes depend on your individual circumstances. Consult a registered tax agent for personal advice. Investment property carries inherent risks including capital loss, rental vacancy and interest rate changes.
How one property funds the next
Model your property portfolio over time. As each property grows, the equity unlocks the deposit for the next — creating a compounding snowball effect.
$1.12M
Total Portfolio Value
$482k
Total Equity Built
$640k
Total Debt
$0
Annual Rental Income
Property 1 (Your Home / First IP)
Purchased Year 0 · 5 yrs held · Deposit: $160k
Current Value (Yr 5)
$1.12M
+$322k gain
Equity
$482k
Usable Equity
$258k
Annual Rent
—
Capital Gain
+$322k
You have $258k in usable equity
That's enough for a deposit on Property 2. Want to see how it plays out?
The equity snowball strategy
Most investors grow their portfolios not by saving cash deposits, but by unlocking equity created by capital growth. As properties rise in value, you access that equity at 80% LVR as the deposit for the next purchase — without ever touching your salary savings.
Property 1 grows → equity builds above 80% LVR threshold
Access usable equity via refinance or equity loan
Use equity as deposit for Property 2 — $0 cash from savings
Repeat as both properties grow — compounding accelerates
At Year 5 with 1 property
$1.12M
total portfolio value
Total Equity
$482k
Annual Rental
$0
The tax advantages of property investing
Australian tax law is unusually favourable to property investors. Here are the three major concessions that make residential property uniquely attractive.
Negative Gearing
in deductions on a top-bracket $800k investment
When your investment property costs more to hold than it earns in rent, the shortfall is a tax-deductible loss. This loss offsets your regular income, reducing the tax you pay.
Example (top tax bracket)
The property still has a net out-of-pocket cost — but capital growth compensates long term.
Depreciation Schedules
typical depreciation deduction on new builds
The ATO allows you to claim depreciation on the building structure (Division 43) and the fixtures and fittings inside it (Division 40). This is a paper loss — no cash changes hands, but it reduces your taxable income.
Typical new property ($700k)
Requires a Quantity Surveyor report ($500–700). Always pays for itself many times over.
50% Capital Gains Tax Discount
CGT if you hold the property for 12+ months
When you eventually sell an investment property, any capital gain is added to your income in the year of sale — but if you've held it for more than 12 months, only 50% of the gain counts. This is one of the most powerful tax concessions available to Australian investors.
Sell after 10 years
Timing your sale carefully (eg. in a lower-income year) can further reduce the CGT impact.
Full list of deductible expenses
All these can be claimed against your rental income each financial year:
Tax rules change and individual circumstances vary. This information is general in nature. Always consult a qualified accountant or tax adviser for advice specific to your situation.
Investment loan questions answered
Everything you need to know before taking on your first — or fifth — investment property.
“Our broker structured the loans so each property is ring-fenced. We've grown from one investment to three in four years without touching our cash savings — all done using equity.”
Mark & Lisa Thornton
Gold Coast, QLD
“I had no idea how to structure my first investment loan. The team walked me through IO vs P&I, the tax benefits, and which lender would give me the best rate. 10/10 experience.”
Sophie Nguyen
Melbourne, VIC
General Information Warning: The information provided is general in nature and does not constitute personal financial advice. It does not take into account your personal objectives, financial situation or needs. Before acting on any information, consider its appropriateness to your circumstances and seek independent professional advice. Consolidated Funding Group Pty Ltd t/as Fairbanks Financial Group | ACR 481272 | FBAA m-330508 | AFCA #48367.
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