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Planning to invest

Successful property investing calls for one key ingredient - planning. A rental property is a substantial financial commitment and you’ll achieve the best results if you take the time to get good advice and plan carefully before you act.


Property investor guide

Our free, downloadable guide explains the costs and steps associated with the purchase of an investment property, positive/negative gearing as well as pros and cons of houses vs. units.


Download now


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Getting started

Before you start hunting for an investment property, it's worth considering several important factors:

1
Your current financial position

Are you well placed to afford an investment property, particularly during the inevitable periods of vacancy?

2
Can you afford a quality property?

Can you afford a property that will attract decent tenants and deliver healthy long term price increases?

3
Where are you heading?

Are you prepared, and can afford, to hold onto your investment for the long term? Will you need access to your capital (money invested) in the near future?

4
How much money will you need?

As with your home, purchasing an investment property can involve significant upfront costs and ongoing maintenance expenses.

5
How much can you afford to borrow?

Getting an idea of your borrowing capacity is the first step in finding out the type of property and location you can afford.

6
Do you need a cash deposit?

If you own your home, did you know you may be able to use home equity instead of a cash deposit?

Finding the ideal property

Your investment property will ideally meet two key criteria - being affordable for you, and appealing to a wide range of tenants.

Affordability

In the first few years of being a landlord, it's likely your property will be negatively geared, which means it costs more to own the property than it earns in rental income. While this can offer tax savings, you still need to be confident that you can cope with the expenses. Even the best properties experience some periods of vacancy, so you also need to be able to cover loan repayments when the property is not generating income.

Tenant appeal

No matter how affordable a property is for you, it won’t be a successful investment if it doesn't attract quality tenants. Consider properties objectively and think about whether you’d be happy to live there. If you're not sure, prospective tenants are likely to think twice too. See our section on finding the right investment property for more details on enhancing tenant appeal.

Once you have a clear picture of your current position, your personal goals and your ability to afford an investment property, you’re ready to start creating - or adding to - your investment property portfolio!


Get started with investing

Many Australians hold investments but have you ever stopped to wonder if your portfolio is really working in your favour? Professional advice takes the guesswork out of investing.

This quick video gives you some insights into getting started with investing.

Talk to a Mortgage Choice expert

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