Investing in Property in Sydney's Inner West
Let stellar finance group help you benefit from long-term capital appreciation, steady rental income, tax benefits, and portfolio diversification
Buying a Home Should Be Exciting!
Millions of Australians invest in property and if you plan to be one of them, bespoke solutions will be key
Start Investing
If you've already purchased your own home, and you have plans to climb the property ladder, we can help you leverage your hard-earned home equity with investment property loans.
Build Your Portfolio
We work with seasoned investors to expand their property portfolio, maximising negative gearing benefits and applying sound strategy.
Why Buy an Investment Property in The Inner West of Sydney
Considering your first property venture or seeking to broaden your portfolio? Investing in property stands out as a top choice. Finance for the acqusition of property offer a straightforward approach compared to other investment avenues like stocks or bonds. Moreover, financing is readily available with numerous low-interest mortgage options, or you can leverage your home’s equity to fund the property.
However, before diving into real estate, it’s essential to grasp the complete landscape. To gain insights into what ownership of an investment property entails, explore the pros and cons outlined below:
Tax Benefits
Dive into the world of tax deductions where negative gearing and depreciation play key roles. Offset mortgage repayments against rental income and claim allowances on fittings and fixtures, all while trimming your tax bill. Just remember, eligibility can vary by location.You can also calculate your loan repayments using our Loan Repayment Calculator.
Capital Growth
Ride the wave of property value appreciation, fueled by factors like market conditions and strategic improvements. Seize the right moment to sell and reap the rewards of a well-timed property acqusition by leveraging finance.
Passive Income
Enter the realm of rental properties, where earning extra cash is as easy as finding the right tenants. While it requires some management and maintenance, the long-term profits can make it worthwhile.
Flexibility
Embrace the versatility of property, where you can flip, rent, or even turn a vacation home into a part-time rental for added income. It’s an investment that adapts to your lifestyle and financial goals.
Your Guide to Investment Property in Inner West
Understanding the Inner West Property Market
Sydney’s Inner West remains one of the city’s most dynamic and in-demand areas for property investment. With its strong infrastructure, proximity to the CBD, diverse lifestyle options, and highly desirable school zones, it’s no surprise that the Inner West property market continues to attract experienced and first-time property investors alike.
From heritage terraces to modern apartments, investment property in Inner West suburbs such as Leichhardt, Dulwich Hill, Newtown, and Marrickville offers a balanced mix of capital growth and reliable rental income. As a leading property finance advisor, Stellar Finance Group can help you unlock the potential of this competitive and rewarding market.
Rental Yield vs Capital Growth: What’s Right for You?
When planning to buy an investment property in Inner West, understanding the trade-off between rental yield and capital growth is crucial.
Some Inner West suburbs attract higher rental returns due to their affordability and demand among tenants, ideal for investors who want positive cash flow from the outset. Others provide long-term capital growth, especially in gentrified or tightly held areas with limited housing supply.
Stellar Finance Group can help you clarify your investment goals and match them to the right Inner West suburb, ensuring your property strategy fits your financial situation.
Should You Work With a Buyers Agent in the Inner West?
The Inner West real estate landscape can be complex and fast-moving. Working with a buyers agent in Inner West can give you a competitive edge by providing access to off-market deals, accurate property valuations, and skilled negotiation support.
We regularly collaborate with reputable local buyers agents, including Johnson Property Co, to ensure our clients have the expert property search support they need. If you’re a time-poor investor or looking for strategic guidance on suburb selection and negotiation, engaging a buyers agent Inner West can be a worthwhile investment.
Popular Inner West Suburbs for Investment Property
Some Inner West suburbs stand out for their unique appeal to property investors. Leichhardt and Annandale are popular among families and professionals thanks to their village feel and proximity to the CBD. Newtown and Petersham attract younger renters and creatives, ensuring consistent tenant demand. Balmain and Rozelle offer long-term capital gains potential, especially for those targeting premium tenants.
Whether you’re interested in high rental demand, long-term property value growth, or future renovation potential, we can help you choose the right Inner West suburb to invest in, one that aligns with your strategy and budget.
How Property Investment in Inner West Compares to Other Sydney Regions
While Western Sydney and the Eastern Suburbs also offer compelling investment options, Sydney’s Inner West remains one of the most balanced regions in terms of growth potential and cash flow. Its proximity to universities, hospitals, transport hubs, and the CBD make it highly attractive to both renters and owner-occupiers.
Compared to Western Sydney, where properties may be more affordable but yield more modest growth, the Inner West property market offers strong capital appreciation over time. And unlike the Eastern Suburbs, Inner West properties often strike a better balance between rental yield and long-term value.
Supporting You with Property Management and Rental Income Strategy
Owning a rental property in the Inner West comes with responsibilities. Choosing the right property manager is essential to ensure your investment performs as expected. We work with reputable property management teams who can help you with tenant placement, maintenance coordination, and regular income reporting.
As your broker, Stellar Finance Group ensures your loan and financial structure complement your long-term rental income strategy, whether you’re aiming for stability, growth, or a mix of both.
Using Equity to Invest in Inner West Property
If you’re a current homeowner, you may not need to save a new deposit to invest. Many of our clients refinance their existing home loan to access usable equity, allowing them to purchase their next investment property in Inner West without sacrificing their lifestyle or savings.
We’ll help assess your borrowing capacity, review your current loan structure, and guide you through refinancing with your existing lender or switching to one that better supports your investment strategy.
Maximise Returns with Smart Structuring
Beyond choosing the right property, success as a property investor in the Inner West relies on smart structuring. Our team works closely with you, and your accountant if needed to:
- Optimise tax benefits through negative gearing
- Maximise allowable depreciation deductions
- Determine the most effective ownership structure (individual, couple, trust, etc.)
- Plan for long-term growth and reduce tax liabilities over time
With the right strategy and finance structure, your Inner West investment can deliver stronger returns and fewer surprises.
Common Mistakes First-Time Property Investors Make
Even in a high-performing market like Sydney’s Inner West, property investment isn’t without risk. Common pitfalls include overborrowing, buying in the wrong suburb, choosing the wrong loan structure, or underestimating maintenance and vacancy costs.
At Stellar Finance Group, we help you avoid these mistakes with education, clear advice, and finance solutions tailored to your real-world goals, not just what’s trending in the property media.
How We Support Property Investors in The Inner West of Sydney
Your Partner in Property & Finance in Australia
At Stellar Finance Group, we understand that every investor has unique objectives. That’s why we offer personalised loan advice backed by deep research and 20+ years of finance experience.
We assist:
First-Time Investors: Navigate the property market with expert guidance, including deposit requirements, lending structures, and investment planning.
Experienced Investors: Secure competitive rates, refinance existing loans, and unlock equity for new opportunities.
Self-Employed Investors: Access low doc investment loans tailored for business owners or freelancers with non-traditional income.
SMSF Property Buyers: Explore self-managed super fund (SMSF) lending for residential or commercial property investments.
Start or Expand Your Portfolio with Confidence
We take the time to understand your financial situation, goals, and risk appetite, then match you with the most suitable loan product and lender. Whether you’re purchasing a townhouse, apartment, duplex, or house and land package, we’ll make sure your finance strategy works for today and scales for tomorrow.
Our team helps you:
Understand borrowing capacity and cash flow impacts
Navigate interest-only vs principal & interest options
Choose between fixed, variable, or split loan structures
Review lender policies on investment properties and rental income
Refinance to release equity or restructure your current loan
Avoiding Common Investment Property Mistakes
Starting your investment journey is exciting, but without the right guidance, costly mistakes can happen. At Stellar Finance Group, we help first-time investors avoid pitfalls and build a solid strategy from day one.
Here are key missteps to watch for:
Overleveraging: Borrowing too much without a clear exit plan can strain your cash flow. We help structure your loan safely.
Skipping Research: The wrong property or suburb can limit growth. We align your finance with sound investment insights.
Poor Loan Structure: Incorrect loan splits can hurt tax efficiency. We work with your accountant to get it right.
Underestimating Costs: Budgeting only for repayments isn’t enough. We help you plan for all expenses, including vacancies and maintenance.
With the right support, investing in property can become a powerful path to long-term wealth.
How to Compare Investment Property Loans
Choosing the right investment loan can be complex. At Stellar Finance Group, we simplify it by comparing loan options aligned with your financial goals.
We look at:
True Costs: Interest vs comparison rates
Repayment Structure: Interest-only or principal & interest
Loan Features: Offset, redraw, portability
Lender Policies: Rental income and tax rules
Rate Type: Fixed, variable, or split
We do the legwork so you can focus on growing your property portfolio.
Frequently Asked Questions
What is an investment property loan?
An investment property loan is a type of home loan designed to help borrowers purchase a residential or commercial investment property. These loans may come with different features, rates, and lending criteria compared to owner-occupied home loans.
How do investment loans differ from standard home loans?
While both are used to purchase property, investment loans often have higher interest rates, stricter approval criteria, and different tax implications. An investment home loan may also allow for interest-only repayments, which can help improve cash flow.
Can I use rental income to qualify for an investment loan?
Yes. Lenders typically consider your rental income when assessing your borrowing capacity for an investment loan. However, each lender has its own policy on how much rental income they’ll accept, often applying a discount or buffer.
What are interest-only repayments, and should I choose them?
Interest-only repayments mean you only pay the interest portion of the loan for a set period (usually 1–5 years), without reducing the loan balance. This can improve short-term cash flow, but your repayments will increase once the interest-only period ends. It may suit certain property investors depending on their investment strategy.
What types of interest rates are available for investment home loans?
You can choose from fixed rate loans, variable interest rate loans, or a split loan that combines both. Each option has its pros and cons depending on your risk tolerance, market outlook, and preferred loan term.
Do I have to pay Lenders Mortgage Insurance (LMI) on an investment loan?
You may need to pay Lenders Mortgage Insurance if your loan amount exceeds 80% of the property value. This protects the lender, not you, in case you default. Avoiding LMI often requires a larger deposit or usable equity.
Can I refinance my existing home loan to buy an investment property?
Absolutely. You may use the usable equity in your current home loan to fund the deposit or purchase of an investment property. A mortgage broker can help assess your equity and refinancing options.
What fees should I expect with an investment property loan?
Common fees include application fees, ongoing fees, valuation costs, and early repayment fees. Comparing investment loans carefully can help you minimise these expenses and maximise returns.
Hear From Our Clients
Lisa has a fantastic way of tuning into needs and ensuring we have confidence in our important decisions, through being well informed and not rushed. Lisa really made us feel assured and helped to break down any knowledge barriers, making us feel in control of our decisions. Thank you Lisa for your ongoing support and helping to build a positive future for our family!
Wayne Jones
From the moment you first meet, Lisa will be here to inform you, guide you and along with you, make your financial dreams come true. Sam Asadollahi recent experienced this when he asked Lisa to help him with purchasing his first property.
Sam Asadollahi
Got a dream? Lisa and her team can help you make it happen. I can’t think of a better person to have on my team to achieve my goals. Her hard work and determination bring results and she always has plan B and C (at least!) to make sure she can make things happen for you. Her team are excellent, keeping you well informed in the progress of negotiations and very responsive. I can’t recommend Lisa and her team enough!
Jennifer Hsu
Lisa was awesome in the way she carried out her services. She was fully engaged from the very first meeting in understanding our needs to then take us through options in the market and eventually help us choose the right product. The whole process was well defined and managed by Lisa and her team all the way till we settled. If you are on the lookout for a professional who knows the mortgage industry well, spends time to understand your needs and maintains a proactive communication at every step of the process, then Lisa should be your choice for a broker. I highly recommend the services of Lisa Bridgett and thank her for the efforts.
Babu Narayanan
It was an absolute pleasure working with Lisa on our loan financing. Lisa is extremely professional, dedicated and knowledgeable. We were very impressed with how responsive Lisa always was (and still is) to all our questions and we valued the fact that we could communicate with her outside of the normal working hours. We would recommend Lisa highly to anyone in need of mortgage financing.
Magda Louw
Lisa Bridgett is all about making her clients’ life easier! From the moment you first meet, Lisa is there to inform you, guide you and along with you, to make your financial dreams come true. Hear what her client Renee Vella has to say.
