How to buy an investment property

1. Know Your Financial Position
Before you begin, assess your financial situation. Most lenders require a 10–20% deposit, plus additional costs such as stamp duty, lender insurance (if required) and legal fees for an investment property. Chatting through options with a mortgage broker can helpclarify your borrowing capacity and guide you through available finance options.

2. Set Your Investment Goals
Are you focused on capital growth, rental income or a combination of both? Your investment goals will influence the type of property you purchase andwhere you choose to buy. For example, outer suburbs or regional areas may offer higher rental yields, while inner-city locations might provide stronger long-term capital growth, while possbly less affordable.

3. Research the Market
Not every property is a smart investment. Focus on locations with steady population growth, planned infrastructure projects, low vacancy rates, and strong tenant demand. Suburb profiles, property reports and council plans are helpful tools for market research.

4. Choose the Right Property
Once you’ve chosen a location, find a property that suits the local rental market. Families may be looking for houses near schools, while professionals might prefer apartments close to public transport and lifestyle hubs. Properties that are low-maintenance and in good condition tend to attract reliable tenants. If considering renovations, factor in the cost and potential return on investment. Multi-rental properies, such as dual income and duplexes are highly attractive to many investors, generating typically higher rental yields.

5. Secure Finance
Pre-approval from a lender can strengthen your position when making offers. Investment loans can attract slightly higher interest rates, and lenders will typically assess your income, expenses and projected rental income. Compare options to find the most suitable loan structure for your goals.

6. Conduct Due Diligence
Before finalising your purchase, arrange for a building and pest inspection, a legal review of the contract and a strata report if buying a unit. These checks help identify any hidden issues and protect your investment.

7. Prepare for Ongoing Management
Once settled, arrange landlord insurance and consider hiring a property managerto handle all your rental property needs. Good property management can helpmaintain the value of your investment and reduce the stress of day-to-day tasks.

Final Thoughts
A well-chosen investment property can offer a mix of income, long-term growth and tax benefits. With clear goals, careful research and the right support,property can be a powerful tool to build your financial future.

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