Community Nurses Guide to Investment Property Types

Understanding Investment Property Types for Community Health Nurses

As a community health nurse, building long-term wealth through property investment can provide financial security beyond your nursing career. When buying an investment property, understanding the different property types available will help you make informed decisions about your first investment property or expanding your investment property portfolio.

The type of investment property you choose will directly impact your rental yield, borrowing capacity, and overall property investment strategy. Each property type comes with distinct advantages and considerations that affect your loan amount, interest rate, and potential returns.

Stand Alone Dwellings

Stand alone dwellings, commonly known as houses, represent the most traditional form of investment property. These properties typically offer:

• Higher rental yields in many Australian markets
• Greater potential for capital growth over time
• Land component that appreciates in value
• More control over renovations and improvements
• Strong appeal to families seeking rental properties

When applying for an investment loan for a stand alone dwelling, lenders often view these properties favourably due to their broad market appeal. The loan to value ratio (LVR) requirements may be more flexible, and you might access investment loan options with competitive variable interest rate or fixed interest rate terms.

However, stand alone dwellings usually require higher initial investment due to increased purchase prices and stamp duty costs. Maintenance responsibilities are also greater compared to other property types.

Apartments and Units

Apartments represent an accessible entry point for nurses looking to invest in real estate, particularly in metropolitan areas. Key characteristics include:

• Lower entry costs making them suitable for your first investment property
• Reduced maintenance responsibilities
• Access to shared amenities
• Strong rental demand in urban areas
• Potentially lower insurance costs

When research property options in apartment complexes, consider the building's age, body corporate fees, and future development plans in the area. Some lenders may have specific requirements for apartment investments, including minimum floor area or building height restrictions.

The application process for apartment investment loans is generally streamlined, with many lenders offering interest rate discounts for quality apartment buildings. However, be mindful that some apartments may require higher deposits due to lender risk assessments.

Town Houses

Town houses offer a middle ground between apartments and stand alone dwellings, combining benefits of both property types:

• Lower purchase prices than houses but higher than apartments
• Some land component for capital growth
• Reduced maintenance compared to houses
• Strong appeal to small families and professionals
• Often located in well-planned developments

When calculating investment loan repayments for town houses, consider that these properties often achieve solid rental yields while requiring moderate maintenance input. Many lenders view town houses as secure investment options, potentially offering access to investment loan options with competitive terms.

Investment Loan Considerations Across Property Types

Regardless of which property type you choose, several factors will influence your investment loan application:

Loan to Value Ratio Requirements
Most lenders require a maximum LVR of 80% for investment properties to avoid lenders mortgage insurance (LMI). However, as a community health nurse, you may have access to LMI waivers or no LMI loans through professional packages.

Interest Rate Options
You can choose between variable interest rate loans that fluctuate with market conditions, or fixed interest rate loans that provide payment certainty. Many investors opt for interest-only repayments initially to maximise cash flow and negative gearing benefits.

Documentation Requirements
The investment loan application process typically requires recent bank statements, employment verification, and detailed property research. As a community health nurse with stable employment, you may benefit from streamlined application processes designed specifically for healthcare professionals.

Property Investment Strategy Considerations

Your choice of property type should align with your overall property investment strategy:

• Cash Flow Focus: Apartments and town houses in high-demand rental areas may provide stronger immediate rental yields
• Capital Growth Strategy: Stand alone dwellings in growth suburbs may offer superior long-term appreciation
• Portfolio Diversification: Consider mixing property types as you expand your holdings

For community health nurses just starting their investment journey, buying your first investment property requires careful consideration of your current financial position and long-term goals. Consider whether rentvesting might suit your circumstances, allowing you to invest in areas you couldn't afford to live in.

Making Your Investment Property Decision

Successful property investment requires thorough research of both the property market and available investment loan options from banks and lenders across Australia. Consider factors such as:

• Local rental demand and vacancy rates
• Infrastructure development and population growth
• Your personal borrowing capacity and risk tolerance
• Potential for negative gearing benefits
• Long-term capital growth prospects

As a community health nurse, you have access to specialised investment loan options that recognise your stable employment and professional status. Whether you're purchasing your first rental property or expanding your property portfolio, understanding how different property types align with your investment goals will help you build long-term wealth through real estate.

Choosing the right investment property type is a crucial decision that will impact your financial future. Consider consulting with mortgage brokers who understand the unique needs of healthcare professionals and can help you access the most suitable investment loan interest rate and loan features for your chosen property type.

Call one of our team or book an appointment at a time that works for you to discuss your investment property goals and explore the loan options available to community health nurses.