Investment property lending, structured properly.
Danny structures investment loans for Bulimba and Brisbane portfolios — stand-alone splits, never cross-collateralised, with lender selection that matches the file.
- $340Msettled
- 13+ yearsbroking
- 80+lender panel
The structural decisions made at settlement determine how an investment property holds up over the next ten years. Danny runs through deposit sources, ownership structure, lender appetite, and how the loan setup interacts with negative gearing — before the application form is touched.
Structuring the loan
Stand-alone split against the existing home as deposit, or a separate facility secured against the new property — the structuring decision affects future refinancing, sale sequencing, and tax treatment of interest deductions. Danny sets up investment loans as separate splits rather than cross-collateralised facilities, so the two properties can be sold or refinanced independently later.
Interest-only vs principal-and-interest, offset vs redraw, fixed vs variable: each combination changes serviceability, cash-flow, and tax deductibility. The right setup for a borrower with a paid-off home is different from a borrower carrying owner-occupier debt.
Serviceability for portfolio borrowers
Lenders weight rental income, existing debt, and assessment buffers differently — the same file may borrow $300k more at one lender than another. Danny reads policy across the panel for portfolio borrowers and matches the file to lenders whose assessment treatment fits.
Negative gearing math is an accountant's domain, but the loan structure has to support whatever strategy the accountant has set up. Trust distributions, joint ownership, and split facilities each have lender consequences worth knowing before signing.
Deposit and equity-release options
Cash deposit, usable equity from an existing Bulimba home, or a combination — each approach has different exposure and tax implications. For first-time investors, equity release against the owner-occupier home typically funds an 80% LVR investment without touching cash reserves.
For experienced investors, the conversation usually shifts to lender selection within an existing portfolio: which lender has remaining serviceability headroom, where exposure limits are biting, and whether refinancing one property frees up borrowing capacity at another.
CGT and the 2026 Federal Budget
The proposed 2026 reform to the CGT discount changes the after-tax economics of new investment-property purchases held under the new rules. Existing properties are expected to be grandfathered. The 2026 CGT calculator on this site frames the sell-now-vs-hold and buy-before-vs-after timing decisions; the loan-structure conversation that follows is what Danny handles.
Frequently asked questions
Direct answers to questions Danny hears most often from Bulimba and Brisbane property investors. General information only — nothing here is personal credit, tax, or financial advice.
How much deposit is typically needed for an investment property?
Most lenders require a 10–20% deposit on investment property purchases, with 20% avoiding Lenders Mortgage Insurance. Equity drawn from an existing Bulimba home commonly funds the deposit without touching cash reserves. Some lenders accept lower deposits with LMI, but investor-loan LMI premiums can be materially higher than owner-occupier equivalents.
Should an investment loan be interest-only or principal-and-interest?
Each setup has trade-offs. Interest-only typically maximises tax-deductible interest in the early years and frees cash for other purposes; principal-and-interest builds equity faster and usually carries a lower rate. Lender policy on interest-only periods has tightened since 2017. The right structure depends on the borrower's overall portfolio and tax position — confirm with an accountant.
What is cross-collateralisation, and is it worth avoiding?
Cross-collateralisation is when both the existing home and a new investment property secure one combined loan. It can simplify approval but tangles future decisions: selling, refinancing, or releasing equity from one property typically requires the other lender's consent. Danny usually structures investment lending as a stand-alone split secured against the existing home, with a separate loan against the new property.
How do lenders treat rental income for serviceability?
Most lenders shade rental income — typically using 75–80% of gross rent — to allow for vacancy, agent fees, and rates. Some lenders also apply a higher assessment rate to existing investment debt. Lender treatment varies materially across the panel; for portfolio borrowers, lender selection often makes the difference between an approval and a decline.
Can a property be bought through a trust or company structure?
Yes — discretionary trusts, unit trusts, and corporate trustees are all common ownership structures for investment property. Each carries different tax, asset-protection, and succession-planning implications. Lender appetite varies: some lenders price trust loans at standard investor rates, others apply premiums or restrict lending. Structure choice belongs with an accountant or solicitor; Danny matches the chosen structure to lender policy.
What is negative gearing, and is it a deciding factor?
Negative gearing means the deductible costs of holding the property — interest, rates, agent fees, depreciation — exceed rental income, producing a tax-deductible loss against other income. Whether negative gearing is the right strategy depends on marginal tax rate, total portfolio, and long-term capital growth expectations. It's a tax outcome, not a goal in itself, and a question for an accountant.
How is buying an investment property different from buying a home?
The transactional steps are similar — finance, contract, settlement — but the lender assessment, loan structure, deposit source, and rate tier are usually different. Investment loans typically carry slightly higher rates, tighter LMI policy, and different assessment treatment for income. Stamp duty in Queensland on investment purchases generally has no first-home or owner-occupier concession.
Prefer to talk it through?
Or book a coffee with Danny instead.
Thirty minutes on Oxford Street, Bulimba — or by video. No pressure, no spreadsheet homework before you arrive.