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Property Investment Fundamentals

Australian residential property

Property Investment Fundamentals

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Property Investment Fundamentals

How do Australian property investors use equity to buy more properties?

Using equity to buy additional investment properties is one of the most common wealth-building strategies for Australian property investors. It allows investors to grow their portfolio without saving large cash deposits for each subsequent purchase. How usable equity is calculated. A lender will typically lend up to 80% of the value of an existing property …

Daniel Chadrawy28 April 2026
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Property Investment Fundamentals

What is an investment-grade property in Australia?

Investment-grade property is a term used by buyer’s agents and investment advisers to describe properties with characteristics that make them suitable for long-term wealth building, as distinct from properties that happen to be available for purchase. Key characteristics of investment-grade property: Broad appeal. The property appeals to a wide range of tenants — not a …

Daniel Chadrawy28 April 2026
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Property Investment Fundamentals

How do you calculate borrowing capacity for an investment property?

Borrowing capacity for an investment property is determined by a lender’s serviceability assessment — a calculation that tests whether the borrower’s income is sufficient to cover the proposed loan repayments at an assessed interest rate, after all other financial commitments. Key inputs into a borrowing capacity calculation: Income. Lenders include base salary, bonuses (usually at …

Daniel Chadrawy28 April 2026
Liviti
Property Investment Fundamentals

What is land tax in Australia and how does it affect property investors?

Land tax is a state and territory government tax levied annually on the total unimproved value of taxable land held by an individual, company, or trust above a threshold. It applies to investment properties — not to an owner’s primary residence (with limited exceptions). State-by-state thresholds (approximate, check current rates):– NSW: $1.075M threshold (2025), with …

Daniel Chadrawy28 April 2026
Liviti
Property Investment Fundamentals

What is an SMSF and can it invest in property?

An SMSF — Self-Managed Super Fund — is a private superannuation fund that gives members direct control over how their retirement savings are invested. SMSFs are regulated by the Australian Taxation Office and must comply with superannuation law. Can an SMSF invest in property? Yes. An SMSF can invest in residential or commercial investment property, …

Daniel Chadrawy28 April 2026
Liviti
Property Investment Fundamentals

What is rental yield and what is a good yield for an investment property in Australia?

Rental yield measures the annual rental income generated by an investment property as a percentage of its value. It is one of the most important metrics for comparing investment property performance across different markets and property types. Gross rental yield = (Annual Rent ÷ Property Value) × 100 Example: A property worth $600,000 generating $580 …

Daniel Chadrawy28 April 2026
Liviti
Property Investment Fundamentals

What is a property investment strategy and how do I develop one?

A property investment strategy is a structured plan that aligns your property acquisitions with specific financial goals — income generation, wealth accumulation, tax minimisation, or retirement funding. Without a strategy, property purchases tend to be reactive, influenced by market commentary, and disconnected from the investor’s actual financial position. Step 1: Assess your financial position. Document …

Daniel Chadrawy28 April 2026

Disclaimer: The information provided on this page is general in nature and does not constitute financial, investment, or tax advice. Always consult with a qualified financial adviser before making any investment decisions. Past performance is not indicative of future results. All projections and estimates are illustrative only.