The ultimate guide to property investment

Not always. A smaller deposit may be accepted, but LMI can add to the cost. Allow for purchase costs as well as the deposit, and check that any professional LMI waiver covers investment lending. Our investment-loan guide explains the options.

You may be able to borrow against your home's equity, subject to the lender's valuation and income assessment. It is extra debt to repay, and your home is at risk if you cannot keep up the repayments. Our guide to using equity explains how the loans fit together.

Don't assume it will. Lenders can use only part of the verified rent and allow for property expenses. Bring the lease or a rental appraisal, plus the balances and repayments for your existing loans, so the borrowing assessment reflects the whole position.

It can reduce the initial repayment, but the balance does not fall during the interest-only period. Repayments rise when you start paying off that balance over the remaining term. Compare both stages, the rate and the total interest before choosing it.

Include rates, insurance, property management, maintenance and body corporate fees where relevant. Keep a reserve for vacant weeks and unexpected repairs. Work out what you would pay from your own income if the rent stopped; a possible tax deduction does not pay those bills as they fall due. Our negative-gearing guide explains the difference between a tax loss and the cash you need.

Possibly, if you can support the loans and running costs for both properties. Before deciding, compare the sale proceeds with the rental income, repayments and costs of keeping it. Get tax advice before changing the loan or moving money. Our sell-or-keep guide works through that decision.