What Are Your Options When Buying Two Investment Properties?

Buying two investment properties at once is possible, but the way you structure the loans matters more than the purchase itself. Your lender looks at both properties as one combined borrowing request, so the decisions you make on security, repayments and rental income affect each other.

As a periodontist, you may have strong income, a practice to run and little spare time. That makes a clear plan useful before you sign anything.

Can You Buy Two Investment Properties at the Same Time?

Yes, you can buy two investment properties at once, or in close succession, if a lender is satisfied you can service the combined debt. Each lender sets its own policy on this, so the outcome depends on who you apply with and how the loans are set up.

Banks and other authorised deposit-taking institutions must assess new borrowers at an interest rate at least 3.0 percentage points above the loan rate. That buffer was confirmed by APRA on 28 May 2026. A lender will test both loans against that higher rate, along with your other debts and credit card limits. Your borrowing capacity is therefore worked out on the full two-property picture, not one property at a time.

How Do Lenders Count Rental Income on Two Properties?

Lenders usually count only part of the expected rent. APRA's guidance says prudent policies apply a minimum 20 per cent haircut, so no more than 80 per cent of expected rent is counted.

That haircut allows for vacancy. It does not cover management fees, repairs or other holding costs, and lenders may also weigh a rental appraisal less heavily than actual rent received. Each lender applies its own rental evidence policy, so it pays to check before you choose a lender.

As an example, consider a periodontist buying two units that each have an appraised rent of $600 a week. The lender may count only $480 a week from each, which is $960 a week in total. That lower figure is what goes into the serviceability test, so the loans need to work on that figure rather than the full $1,200.

Interest Only or Principal and Interest: What Changes?

Interest only repayments are lower early on, but they do not increase how much you can borrow. Lenders assess an interest-only loan as if principal and interest repayments applied over the remaining term after the interest-only period ends.

A 30-year loan with a 5-year interest-only period is therefore tested over 25 years of principal and interest. The trade-off is that you do not reduce the balance during the interest-only period, so you owe the same amount when repayments change. Our interest only loans page explains the structure in more detail.

To see the cash flow difference, take a $600,000 loan at the illustrative rate of 6.75% p.a. Interest only repayments would be about $3,375 a month. On a 30-year principal and interest basis at the same rate, the repayment is about $3,891 a month. If the same loan were interest only for five years and then moved to principal and interest, the later repayment would be calculated over 25 years and would be about $4,145 a month. These figures are illustrative only. Use a repayment calculator with your own numbers.

Should Both Properties Sit Under One Lender?

There are two separate questions here: how the lender holds your properties as security, and whether you use one lender or two.

Where loans are cross-secured, a lender may hold both properties as security for the total debt. That can limit your options if you later want to sell one property or refinance it. Standalone loans keep each property as separate security, which gives you more freedom.

Using one lender may be more convenient, and that lender sees your whole debt position. Using two lenders means you need to meet each lender's policy. Think about this before you buy, because releasing or refinancing security later may involve fees and a new lender assessment, and these vary by lender.

If you already own a home or practice premises, you may also be thinking about using existing equity for the deposit. Our equity release loans page covers that approach, including the risks of increasing your total debt.

What Does Negative Gearing Look Like for a Second Property Now?

The tax treatment of a rental loss now depends on when you buy and whether the property is established or a new build. Speak to your accountant before you choose properties, because the rules changed in 2026.

Under the new law, losses from established residential properties bought after 7:30pm AEST on 12 May 2026 can only be deducted against other residential property income from the 2027-28 income year. Properties bought between that time and 30 June 2027 can use the current rules until 30 June 2027 only. Eligible new builds acquired after 12 May 2026 can still have losses deducted against all income.

Only the interest portion of a principal and interest repayment is deductible. The principal portion is not. Because your income as a periodontist is likely to be high, a loss you cannot use against your salary matters more to your cash flow. Your accountant can model this for your situation.

Which Costs Should You Plan for Beyond the Loan?

Beyond the loan itself, you need to allow for stamp duty, lenders mortgage insurance if borrowing above 80 per cent of the property value, and ongoing costs such as body corporate fees where relevant.

LMI is generally required once the loan to value ratio goes above 80 per cent, and the premium is paid by the borrower. Some lenders offer LMI waivers for certain professions, though policies vary and need checking with the lender. See our page on LMI waivers for dentists for more on this. Stamp duty depends on the state and the property price, so check your state revenue office calculator.

One point to keep in mind is that an offset account balance does not reduce the loan amount for lender LVR calculations, even though it reduces the interest you pay. That can matter if you are close to the 80 per cent line on either property.

How Does a Broker Help Set Up Two Purchases?

A broker compares lenders on policy fit, not only on price, and sequences the two applications so one does not undermine the other.

That includes checking how each lender treats rental income, interest-only terms and professional income. If you are building a longer plan, our guide to expanding your property portfolio shows how the first purchases affect the next.

We work with periodontists and understand how income from a practice, a partnership or employment is presented to a lender. We will also talk through the trade-offs of each structure, including higher total debt and the risk of rents falling short.

Call one of our team or book an appointment at a time that works for you, and we will map out how two investment properties could fit with your goals and your cash flow.

Frequently Asked Questions