An investment loan is a type of home loan that someone takes out to buy an investment property. It is a mortgage solution for those who want to buy a property and rent it out to receive income from it, but can’t afford to buy the property without a loan.
Many things about investment loans are different to how standard home loans work because they have stricter eligibility requirements. Investment loans often require a higher loan-to- valuation ratio (LVR), meaning investors need to raise a larger deposit before applying for a loan. They also have a slightly higher interest rate on average than residential home loans do.
Expenses that you make for your investment property can be claimed as tax deductions to reduce your taxable rental income while you’re renting it out, and your capital gains tax if you sell the property.

The tax deductions you can claim for an investment property include:

1) Interest on the investment loan

2) Home and contents insurance and landlord insurance

3) Real estate agent’s commission

4) Maintenance costs

5) Council rates

6) Decline in value of depreciating assets

7) Construction costs (“capital works”)

8) Travel expenses to the property to do an inspection, maintenance or   
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