Frequently asked questions
How much deposit do I need for an investment property?
It depends on the lender, the property and your overall position. Many investors plan for a deposit plus purchase costs such as stamp duty, conveyancing, lender fees and inspections. Borrowing above a certain proportion of the property value usually triggers lenders mortgage insurance. Your broker or lender will confirm the figure for your situation.
Should I buy for cash flow or capital growth?
Cash flow makes a property easier to hold; growth builds the equity that funds the next purchase. Most portfolios blend both, sequenced so each purchase does not block the next. The right answer depends on your income stability, timeframe and goals.
Is buying off the plan risky?
It carries specific risks - valuation shortfalls at settlement, construction delays, sunset clauses and localised oversupply. Those risks are manageable with a contract review, a finance buffer and proper developer due diligence. See our off the plan guide for the full checklist.
What is depreciation and why does it matter?
Depreciation is a non-cash tax deduction for the decline in value of a building and its fixtures. Newer properties generally allow larger deductions. A qualified quantity surveyor prepares a depreciation schedule, and your accountant applies it. Rules change, so confirm current treatment with your accountant or the ATO.
Can I buy an investment property before I own a home?
Yes. Some buyers purchase an investment first and continue renting where they want to live. It is a common approach, but it affects your borrowing capacity and any first home concessions, so get advice before committing.
How long should I plan to hold an investment property?
Property is a long-term asset. Entry and exit costs are significant, so short holds rarely work well. Most investors plan in terms of many years rather than months.
Do I need a property manager?
Not legally, but most investors use one. A manager handles tenant selection, rent collection, compliance and maintenance, which matters more as your portfolio grows.
How much does the blueprint cost?
Nothing. The $0 - $2M Property Blueprint is free - enter your details and it is emailed to you, and you can also book a complimentary strategy call.
Common mistakes to avoid
- Buying emotionally. An investment property is for a tenant and a balance sheet, not for you to live in.
- Skipping the finance conversation. Knowing your true capacity first prevents wasted months and failed contracts.
- Forgetting the costs beyond the price. Stamp duty, owners corporation fees, insurance, management and maintenance all change the maths.
- No buffer. Vacancy, repairs and rate movements are certainties over a long hold, not surprises.
- Buying without a second purchase in mind. A deal that consumes all your capacity can end a portfolio at one property.
- Relying on the seller's numbers. Get independent rental appraisals, comparable sales and contract review.
More detail
Read the first-time property investor guide, the Melbourne property investment guide or the off the plan Melbourne guide.
General information only, not financial, legal or tax advice. Speak to a licensed professional about your circumstances.