Buying your first investment property in Australia

You'll typically need around 20% of the purchase price to avoid lenders mortgage insurance, plus purchase costs. That can come from cash savings, from usable equity in a home you already own, or a mix. Smaller deposits are possible, but they add an insurance premium and reduce your buffer.

Work out the figure first. It sets your price range, and your price range sets which markets are even relevant to you.

Lenders test whether you can still make repayments at a rate higher than today's. Your income stability, existing debts, credit card limits and living expenses all feed in. Expected rent helps, but it's counted conservatively and it stops entirely during a vacancy.

A useful question to ask yourself: if the property sat empty for eight weeks and rates moved against you, would your household still be comfortable? If the answer is no, the purchase is too big, not the timing.

• Stamp duty and conveyancing.
• Building and pest inspections before you're committed.
• Landlord insurance and building insurance.
• Property management fees and letting fees.
• Council rates, water, strata levies where they apply.
• Repairs, maintenance and a vacancy allowance.

Be cautious with anyone who leads with a specific property before they've looked at your numbers, pushes a deadline, or is paid by the developer rather than by you. Ask directly how they're remunerated. A professional will answer plainly.

We generate the lead and match you with one independent specialist, not a rotating call centre, and there's no obligation to proceed. If it isn't right for you, walk away — and you can ask us to delete your details at any time.

Also worth reading: using home equity to buy an investment property.