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No matter why you want to invest in property – capital growth, rental yield or tax concessions – it's important to understand the possible returns and costs before you commit.

The possible revenue

Rental income

  • What you can realistically expect a tenant to pay you each month given the size, condition and location of your property.
  • It is also important to factor in vacant periods when you may not have tenants.

Capital growth

  • How much will the property grow in value? This will vary over time and depend on the location of property.

The combination of both

  • Of course it is the combination of capital growth and rental returns that will justify the type of investment you make and the level of borrowing you can and should consider.

The likely costs

Interest repayments

  • The monthly interest repayments on either a variable or fixed rate loan. With a variable rate loan the interest could go up or down at any time. With a fixed rate the payments will be set for the period of the fixed loan but will then need to be reset when that period ends, depending on how interest rates have moved.

Council rates

  • Set annually and include costs such as rubbish collection and other local services.

Strata fees

  • Set and agreed annually by the strata title owners of an apartment complex. Will include things such as building insurance, maintenance and building works, property management and accountant fees.
  • If you are buying an apartment, villa or townhouse, it may be worth getting a strata search so you’ll know if there are any special levies in the pipeline.


  • If it’s a house, you’ll be up for all the building repairs and in an apartment block, you’ll be responsible for repairs to fixtures and fittings and any white goods and appliances you include within your unit.

Property management fees

  • If you have the time and inclination you can manage the property yourself. If you get a managing agent count on paying around 5% of the rent.

Insurance costs

  • You will pay building insurance directly if you buy a house or as part of strata fees with an apartment unit. It’s also a good idea to get landlord’s insurance which covers things like damage by the tenant, your liability if a tenant injures themselves or lost rental income if your tenant moves out without paying.

Tenant free periods

  • Assuming your property will be vacant for at least four weeks a year is a good rule of thumb for initial budgeting.

One off purchase costs

  • As part of the purchase process you will incur one off charges such as legal costs, stamp duty and building inspection costs.

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This advice is general and does not take into account your objectives, financial situation or needs. You should consider the PDS and Terms & Conditions, available from IMB, before making a decision about products related to property investment. 

Why choose us?

Established in 1880, IMB Bank is one of the most enduring financial institutions in the country, helping people achieve their financial goals for over 140 years. Our members can access a fully featured range of services: home and personal lending, savings and transaction accounts, term deposits, business banking, and more.

Our renowned personal service is backed by innovation, providing convenient, secure digital banking options where and when you want it. IMB also has a growing retail branch network throughout NSW and Victoria, for when you need to speak to someone in person, and a team of professionals at our locally based contact centre. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you.

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