Looking to invest?
Investing in property is one of the most powerful ways to create long-term wealth — and the right finance strategy is the foundation. At Nexus Loans, we help investors at every stage: from purchasing their first investment property to building multi-property portfolios and funding large-scale developments.
Our role is to structure your loans for maximum growth, tax efficiency, and flexibility, so you can keep expanding with confidence. Whether it’s residential investments, commercial property, or development finance, we’ll help you access the lending solutions to turn your vision into reality.
We Help Structure Your Investment Correctly
Whether you're buying your first investment property, using equity, investing through a trust or SMSF, building a multi-property portfolio, or navigating the recent negative gearing changes, we'll help you find a lending structure that aligns with your goals and lender policy.
Ownership Structures
Individual Ownership The simplest and most common structure. You purchase the property in your own name. This is typically the most straightforward for lending purposes, with access to the widest range of lenders and products, and the highest LVR options (up to 90%+ for some lenders on investment loans). Negative gearing losses can offset your personal taxable income, subject to eligibility.
Joint Ownership Purchase with a spouse, partner, family member, or friend. Combining incomes can increase borrowing capacity, and costs are shared. Lenders will assess all applicants' income, expenses, and liabilities. Ownership can be held as joint tenants or tenants in common, which affects how the property passes on death — seek legal advice on which suits your situation.
Family (Discretionary) Trust A discretionary trust can offer flexibility for income distribution and potential asset protection. The trustee (often a company) holds the property for the benefit of trust beneficiaries. Lending through a trust typically involves lower maximum LVRs (commonly capped at 80%), a smaller pool of willing lenders, and may attract slightly higher interest rates. Trust losses generally cannot be distributed to beneficiaries — negative gearing benefits are limited compared to individual ownership. Always seek accounting and legal advice before choosing this structure.
Unit Trust Often used when multiple unrelated investors purchase together. Each investor holds units in the trust proportional to their contribution. Lending policies are similar to family trusts — expect lower LVR caps and a narrower lender pool. Some lenders require all unit holders to guarantee the loan.
Company Ownership Purchasing through a company structure may suit certain long-term strategies. Company borrowing typically attracts higher interest rates, lower maximum LVRs (often 70–80%), and different tax treatment — companies cannot access the 50% CGT discount, and negative gearing losses are trapped in the company. Lenders assess company financials and director guarantees are usually required. Seek professional tax and legal advice.
Self-Managed Super Fund (SMSF) Purchase an investment property through your SMSF using a Limited Recourse Borrowing Arrangement (LRBA). SMSF lending has strict compliance requirements under superannuation law, a limited pool of specialist lenders, higher interest rates than standard investment loans, and lower maximum LVRs (typically 70–80%). The property must be held in a separate bare trust, and the fund must meet a sole-purpose test. We work with the lenders that offer SMSF lending and can guide you through the requirements — but you'll also need an SMSF specialist, accountant, and financial planner involved.
3. Property Types
Established Property Buy an existing home or unit with immediate rental income and an established rental history. The broadest range of lenders and products is available, with the highest LVR options. Established properties don't qualify for the federal negative gearing rules for contracts exchanged after 12 May 2026 — see the Negative Gearing section below.
New Build Investment Purchase a brand-new completed property. May offer depreciation benefits (capital works and potentially plant and equipment), lower ongoing maintenance, and modern tenant appeal. New builds may qualify for negative gearing under the federal rules for contracts after 12 May 2026.
House & Land Package Purchase land and fund construction through a single or split loan arrangement with progress payments throughout the build. Some lenders offer combined land-and-construction loans; others require separate approvals. House-and-land packages generally qualify as new builds for negative gearing purposes.
Build to Invest (Construction) Construct a new investment property to take advantage of depreciation benefits, lower maintenance costs, and modern tenant appeal. Construction loans with progress payments manage cash flow during the build. New construction generally qualifies for negative gearing under the federal rules.
Off-the-Plan Investment Purchase a property before construction is completed, often with a 10% deposit and balance due at settlement. This can provide time to save before settlement and potential capital growth during the construction period. Off-the-plan apartments may qualify for negative gearing under the federal new-build rules for contracts after 12 May 2026. Be aware that valuations at settlement can sometimes come in below the contract price, which may affect your LVR and require additional funds.
Dual Occupancy A property with two self-contained dwellings on a single title. Can increase rental yield from a single block. Lending depends on whether the dwellings are on one title or can be separately titled — some lenders treat dual-occupancy properties differently in valuation and servicing, and LVR caps may be lower if the second dwelling isn't separately titled.
Duplex Investment Build or purchase a duplex to maximise land usage and create two rental income streams. Similar to dual occupancy, financing depends on title structure — a strata-titled duplex may be treated as two separate securities, while a single-title duplex is assessed as one property with two income sources.
Granny Flat Investment Add or purchase a property with a secondary dwelling (granny flat) to increase rental yield and improve cash flow. Lender treatment varies — some will include granny flat rental income in servicing, while others may not, particularly if the dwelling isn't approved or is not compliant with local council regulations. LVR caps may be affected.
Commercial Property Invest in offices, warehouses, retail premises, industrial property, or medical suites. Commercial lending is structurally different from residential — typically requiring larger deposits (30–50%), shorter loan terms (often 15–30 years), higher interest rates, and different servicing criteria based on the property's rental yield and lease terms rather than personal income alone.
Mixed-Use Property Properties combining residential and commercial components (e.g., a shop with a residence above). Lender policy varies significantly — some treat these as commercial, others as residential with conditions. LVR caps and interest rates depend on how the lender categorises the property.
Holiday Rental / Short-Stay Investment Properties intended for short-term accommodation such as Airbnb or holiday letting. Lender treatment of short-term rental income varies widely — some lenders will not accept short-term rental income in servicing at all, others apply significant discounts to the income, and some require a history of sustained short-term rental returns. Maximum LVRs may also be reduced for properties in short-stay zones.
2. Financing Approaches
Equity Release Use the equity in your existing home or investment property to fund the deposit and costs of your next purchase. This can be done via a top-up, a line of credit, or by refinancing to access released funds. Lenders will assess your servicing capacity on the increased debt, and some cap equity releases at a combined LVR of 80% to avoid LMI on the released portion.
Guarantor Investment Loan A family member (typically a family member) uses their property as additional security to reduce or eliminate the need for a deposit and potentially avoid LMI. Not all lenders offer guarantor support for investment purchases — some restrict family guarantees to owner-occupied loans only. Where available, the guarantor's property is usually limited to a capped portion of the security, and the guarantor should seek independent legal advice.
Interest-Only Investment Loan Many investors use interest-only repayments to maximise cash flow and tax-deductibility of interest during the interest-only period (typically 1–5 years, sometimes up to 10). Lenders assess your capacity to repay at principal & interest rates, even during the interest-only term, and some apply a rate loading or reduce maximum LVR for interest-only investment loans.
Cross-Collateralisation Using one property as security for a loan on another, effectively tying multiple properties to the same lender. This can simplify borrowing but reduces flexibility — selling or refinancing one property may require lender approval and valuation of the others. We generally recommend standalone loans with separate security where possible, and can explain the trade-offs.
Split Loans Divide your borrowing into multiple loans — for example, splitting an investment portion from a personal portion, or fixing part of the loan while keeping part variable. This can help manage risk, separate tax-deductible and non-deductible debt, and provide repayment flexibility.
Construction Loan Fund a new build with progress payments drawn down at each stage (base, lock-up, fix-out, completion). Interest is charged only on the amount drawn, which helps manage cash flow during construction. Lenders require fixed-price building contracts, plans, and council approval before approval.
Master Limit is a product feature that sets the total approved borrowing capacity across all loan splits (sub-accounts) under a single facility. Think of it as one umbrella limit that covers everything underneath it.
How it works:
The sum of all individual loan split limits must equal the approved Master Limit
You can have multiple splits under the one Master Limit (e.g. a variable split, a fixed split, an investment split) — but their combined limits can't exceed the Master Limit
Negative Gearing Borrow to invest where the property's expenses (including interest) exceed the rental income, with the loss offset against other taxable income. Following the federal changes announced in the 2026 Budget, contracts exchanged on or before 12 May 2026 are grandfathered and retain negative gearing regardless of property type. Contracts exchanged after 12 May 2026 only retain negative gearing if the property meets the federal new-build rules — including house-and-land packages, construction on vacant land, off-the-plan apartments, and new builds sold to investors within 12 months of occupancy. Established property purchases after this date do not qualify. Always confirm your eligibility with your accountant, as this is a tax-law matter, not a lending one.
Positive Cash Flow Strategy Focus on properties where rental income exceeds ongoing ownership costs (loan repayments, rates, insurance, management fees, maintenance). More common in regional areas or high-yield property types. Positive cash flow properties generate taxable income rather than deductible losses.
Capital Growth Strategy Target suburbs with strong long-term capital appreciation potential, accepting lower rental yields in exchange for expected equity growth over time. Often involves interest-only lending to hold costs down during the growth period.
Buy, Renovate & Hold Purchase a property with renovation potential, improve it to increase value and rental appeal, then hold for ongoing income and future capital growth. A revaluation post-renovation may release equity for the next purchase. Construction or reno loans may be available depending on the scope of works.
Buy, Renovate & Sell (Flipping) Purchase, renovate, and sell for profit. This is typically treated as a business activity by the ATO rather than a capital gain, with different tax treatment. Lender policy on short-term ownership varies — some lenders won't refinance or release security within the first 12 months. Seek tax advice before pursuing this strategy.
Rentvesting Continue renting where you want to live while purchasing an investment property in a more affordable or higher-growth location. This allows you to enter the property market without compromising on lifestyle, while building an investment portfolio. Lenders assess your rent as an ongoing expense alongside the investment loan.
Portfolio Building Purchase multiple investment properties over time using equity growth, increased borrowing capacity, and strategic loan structuring. As your portfolio grows, lenders increasingly scrutinise debt-to-income ratios, living expenses, and the overall risk profile. We can help structure your loans to maintain flexibility and maximise your borrowing capacity across multiple properties.
Regional Investment Purchase in regional areas targeting affordability, stronger rental yields, or long-term growth driven by infrastructure, population shifts, or industry. Some lenders apply postcode restrictions or reduce LVRs for certain regional locations — we'll check which lenders lend in your target area.
Interstate Investment Invest outside your home state to access different markets, opportunities, or stronger yields. Stamp duty, land tax, and tenancy laws differ by state. Lending is generally unaffected by the investor's location, but the property's location may trigger postcode or security-type restrictions with some lenders.
Subdivision Projects Purchase larger blocks with the intention of subdividing to create additional lots or dwellings. Finance typically requires development or construction lending rather than standard residential loans, and lenders will want to see council feasibility, town planning advice, and a project budget. LVR caps are usually lower for subdivision projects.
Property Development Develop townhouses, units, or multiple dwellings as part of a larger investment strategy. Development finance is typically handled through specialist lenders or bank business banking divisions, with funding structured around project stages (acquisition, construction, presales, sell-down or refinance). Lenders assess the project's feasibility, your experience, presales requirements, and exit strategy.
4. Investment Strategies
We can help you access equity, secure lower rates,
and utilize key loan features for financial success.
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