How to start investing in property in Australia

Before a single inspection, write down three numbers: the usable equity in your home, your household income after commitments, and any cash savings you'd be willing to use. Add your super balance and your age, because both change what a strategy can realistically look like over a 10 to 20 year hold.

Those numbers decide almost everything that follows. An investor with $250,000 of usable equity and a stable income is in a very different conversation to someone with $40,000 in savings and variable earnings — and neither is wrong, they're just different starting points.

Australian lenders assess serviceability: can you cover repayments if interest rates rise from where they are today? They look at income stability, existing debts, credit cards and buy-now-pay-later limits, dependants, and living expenses. Rental income from the investment is usually counted, but only in part.

This is why the pre-approval conversation matters more than the property search. Knowing your genuine borrowing capacity narrows the market to what's actually available to you and stops you falling for stock at a price you were never going to reach.

Buying an investment property to let is the most common starting point for Australian investors: a tenant contributes to holding costs while you hold for the long term. Others look at commercial property, where leases can run longer and outgoings are often paid by the tenant, but entry costs and vacancy risk differ.

There is no single correct answer. The right strategy depends on your cash flow tolerance, your timeframe, and whether you need income now or growth later.

Stamp duty, lenders mortgage insurance, conveyancing, building and pest inspections, landlord insurance, property management fees, council rates, repairs and vacancy periods all sit on top of the deposit. A common mistake is stretching to the limit on the deposit and having no buffer for the first year.

The fastest way to know if property stacks up for you is one conversation with one of our independent property specialists who has looked at your brief first. That's what this site does: you send a short brief, we generate the lead and match you with one specialist, and they explain what your position allows and what it doesn't.

It's free, there's no obligation, and it's general information — not personal financial, credit or tax advice. We do not assess your position; we simply generate the lead and pass it to an independent specialist. For advice about your circumstances, speak to an appropriately licensed professional.

Next: how to use home equity to buy an investment property.