Investment property loans often require a higher deposit (usually 20%), and lenders may scrutinise your ability to generate rental income.

You can manage it yourself or hire a property manager to handle tenants, rent collection, and maintenance.

If you sell an investment property for more than its purchase price, the profit is subject to CGT. However, there are exemptions if the property was your primary residence.

Residential properties are often easier to rent and finance, but commercial properties can offer higher returns.

Risks include market fluctuations, tenant issues, property damage, and changes in interest rates or tax laws.

You may be eligible for deductions on interest, maintenance, depreciation, and property management costs.

An investment property is real estate purchased to earn rental income or capital appreciation (an increase in value over time).

Negative gearing occurs when the income from an investment property is less than the expenses, creating a tax-deductible loss.

Positive cash flow occurs when your rental income exceeds your expenses, giving you extra income.

Look for areas with strong rental demand, infrastructure development, and potential for capital growth. Suburbs in major cities and regional growth areas are often favoured.