Proposed rental income

When purchasing an investment property, the rental income that asset will produce in the future can be used for servicing calculations, it will depend on which lender, but as a rule they will normally use 80% of this income in your borrowing capacity calculations. They will also ask you to provide some sort of evidence of this by way of a property valuation or rental appraisal from a real estate agent. You must declare all the income you receive for your rental property (including from overseas properties) in your tax return.