Let us Help
With Your Investment Property.
Despite fluctuating global markets, building a property portfolio remains a popular long-term investment in South Australia. However, finding the right investment property can be challenging and time-consuming. Most importantly, the location and type of property you choose will directly impact your return on investment.
At LKFS, we work with you to develop a personalised investment strategy tailored to your goals and circumstances. We firmly believe that successful property investing starts with careful planning. A rental property is a substantial financial commitment, and you’ll achieve the best results by getting expert advice and planning before taking action.
That’s where we come in. Our team will guide you through every step, helping you make informed decisions that maximise your investment potential.
Start building your property portfolio with confidence. Contact LKFS today.
The Right Loan for Your Investment Property
If you’re considering purchasing an investment property, the loan structure is just as important as the property itself. Finding the right investment loan can make a significant difference to your long-term financial outcomes.
At LKFS, we start by getting to know you and understanding your long-term goals. From there, we handle all the details, so you can focus on finding the right property.
With access to over 40 lenders, a highly experienced in-house broking team, and guidance from a Financial Planner, you can relax knowing your loan structure is carefully designed to suit your financial future.
Partner with LKFS to secure the right investment loan and make confident property investment decisions.
want to make sure you get
the right type of investment loan?
Some lenders consider tax benefits and rent received when determining your borrowing capacity, and some do not.
Instead of spending hours trying to find answers, partner with LKFS and we can do all the hard work for you. Choosing the right investment loan will manage your cash flow, minimise your costs and maximise your tax advantages.
Variable interest rates can fluctuate over time. If rates move up or down, your loan interest rate will adjust accordingly. Generally, interest rate movements are determined by the Reserve Bank, however, lenders have recently started independently raising their interest rates for varying economic reasons. Variable loans usually allow you to pay additional repayments, and there is less risk of penalties if the loan is paid out early.
Fixed interest rates are locked in for a set period of time, usually between one and five years. If interest rates move up or down, your interest rate is secured. Fixed rate loans can have a downside – you’re limited in making additional repayments (if any), and you may also have to cover potential break costs if the loan contract is paid out during the fixed rate term.
A split loan gives you the option to fix part of your home loan and leave the other part variable. Having part of the loan variable means you can still make extra repayments without being penalised on the variable portion, and gives you peace of mind on the fixed portion, knowing the rate won’t change. Many people tend to go with a split loan to manage some of the risks if interest rates rise.
Get The
Right Property At The Right Proce
Investing in real estate is usually all about capital growth, so choosing a property that is more likely to increase in value is the most important decision you will make, so buying at the right price is absolutely critical. It is also important that your property suits the demographics of renters in the area. For example, if it is near a university more bedrooms will be in greater demand than a big backyard for kids to run around. A family home that is close to schools and parks on a quiet street will be more desirable than a property on a busy road.
Get the Right Property at the Right Price
Investing in real estate is all about capital growth, so selecting a property with strong potential to increase in value is one of the most important decisions you’ll make. Buying at the right price is absolutely critical to maximizing your return on investment.
It’s equally important to ensure your property matches the needs of local renters or buyers. For instance, a property near a university will typically have higher demand for multiple bedrooms, while a family home close to schools, parks, and on a quiet street will be far more attractive than one on a busy road.
By understanding both the market dynamics and local demographics, you can make informed decisions that increase the long-term value of your investment.
Make Smart Investment Property Decisions
Many investors don’t realize that lenders and mortgage insurers hold valuable data on property locations and developments. Accessing this information can help you avoid choosing the wrong investment property and give you a competitive edge in the market.
Never base your investment decision solely on tax deductions. While tax benefits are useful, your focus should always be on making the right long-term investment choice. A steady rental income stream is equally important, as consistent cash flow makes holding the asset more affordable and provides reliable income.
Different types of residential property—houses, units, and vacant land—can perform differently over time:
Vacant land offers no rental income but may appreciate faster in areas with limited supply.
Home units can mean lower maintenance costs compared to freestanding houses.
Some areas may offer higher rental yields, but these properties often provide lower capital growth.
Doing your homework, analyzing local demographics, and understanding the market are key to selecting the right property that balances rental income and long-term capital growth.
Wondering about the
tax implications?
Tax Considerations for Investment Properties
Owning an investment property comes with important tax implications:
Rental income is taxable but can be offset by allowable deductions.
Deductible expenses may include loan interest, property management fees, council rates, repairs, and depreciation.
Negative gearing can reduce taxable income if your expenses exceed rental income.
Important: Tax rules are complex and personal circumstances vary. Always speak with your accountant or financial planner before purchasing an investment property to ensure your strategy aligns with your financial goals.
Common Tax implications
Negative Gearing Can Reduce Your Income Tax
Your property is negatively geared when your costs to maintain the property are more than the rental income. In that case, you will be eligible to reduce the amount of tax you pay on your income. For instance, say you earn rental income of $30,000 over 12 months. Suppose your net rental property expenses are $45,000. Your loss on the rental property equals $15,000 for the year, which you can deduct from your taxable income. Assuming you are in a 33% tax bracket, this reduces the tax you owe by $5000 ($15,000 x .33).
In contrast, if your property is positively geared, meaning the rent it generates is more than the cost of owning the property, you must pay tax on that rental income.
When Is Capital Gains Tax Payable?
Capital gains tax may be payable if you sell your investment property to make a profit after some time. The good news is that the costs of the property (including buying and selling costs, stamp duty, legal fees, and the real-estate agent’s commission) will be deducted when calculating the profit from the sale. If you own the property for at least 12 months, only half the profit will be subject to capital gains tax.
When you first purchase the property, keep all relevant documents so you’re able to claim everything to which you’re entitled. Also, make sure to declare all your rent-related income in your tax return each year. You’ll need to keep records of the date and costs of buying the property for capital-gains-tax purposes. Remember that keeping these records will help ensure you don’t pay more tax than you owe.
How Can I Get Potential Tax Deductions?
You will be able to claim a tax deduction on various expenses related to your investment property when it’s rented out or available for rent.
These include but are not limited to:
Advertising costs
Property management fees
Borrowing expenses, including loan interest charges
Council rates, land tax and strata fees
Building depreciation
Repairs and maintenance
Cleaning and gardening costs
Building and landlord insurance
Accounting and bookkeeping fees
Check ato.gov.au for more information on tax deductions you can claim.