How to Invest in Property in Australia: All the Info You Need

how to invest in property in Australia

At the moment, Australia is one of the best places to invest in property. It has a stable market and plenty of opportunities to find a good property deal.

However, if you’re a beginner, you surely want to know more about how to invest in property in Australia. 

Keep reading, as this article will provide you with all the answers you need. 

Steps Before You Start Investing in Property

Looking to invest money right now in Australia? Property investments are excellent way to make money. Here are a few things you need to know before making your first investment in property in Australia.

Check Your Finances

Buying a house is a huge and long-term investment, so you need to get your finances straight. You can get the amount you need to purchase a property in many ways, including:

  • Dipping into your savings – if you have enough money saved, you should be able to buy a property or at least have enough for a house deposit. However, it takes quite a while to gather enough money for purchasing a property, so you need to think of it beforehand.
  • Requesting a personal loanpersonal loans are a great way to get the money you need without putting up your personal belongings as collateral. However, read the terms and conditions carefully before signing and always compare offers from multiple lenders.
  • Considering a home loan (mortgage) – this type of loan is secured by your home and is given by banks, credit unions, and other financial institutions. However, keep in mind that the lender can foreclose on your home if you default on the loan.

How to save on a home loan? Check out some tips here!

Set Your Goals Straight

When making an investment in a property in Australia, it’s important to think about the size of the house, the city or neighbourhood it is located in, how many rooms it has, and other similar factors. 

After all, this is where you’ll spend your life, and you’ll want to make it not just your house but a home as well. With that in mind, you need to do some research and see if your finances allow you to buy a property that has (almost) everything you’re aiming for.

Pre Approval

Many first-time homebuyers don’t realize the importance of loan pre-approval. Getting pre-approved for a loan gives you a number of benefits.

  • It tells you how much you can afford to spend on a home; you can narrow your search to homes that are within your price range. 
  • Loan pre-approval gives you leverage when negotiating with sellers. The seller will know that you’ve been approved for a loan and are serious about purchasing their home.
  • Pre-approval can help to speed up the loan process once you’ve found the perfect home. 

If you’re thinking about buying a home, be sure to get a loan pre-approval first. It could make the difference between finding your dream home and being stuck with a house that doesn’t meet your expectations.

Start Budgeting

When you want to make an investment in a property, a loan is usually enough for purchasing a house. However, once you buy it, you need to get your finances in order and start tracking your spending. By creating a budget, you can see where your money is going and make changes to your spending habits. Budgeting can help you save money, reduce debt, and achieve financial goals.

Inform Yourself

Once you start property hunting, you need to gather all of the information you can, both financial (e.g., savings, mortgage, and loans) and property-related. If you find a perfect property online, make sure you check it out in person and do additional calculations (e.g., repairments, remodelling, etc.).

Understand the Risks 

Even if you do everything right, there is still a chance for unexpected problems to occur. There might be some hidden house costs that you cannot see right away, such as an old plumbing system, problems with mould, bad insulation, etc. Small details that you might miss can affect your budget and finances greatly, so make sure you watch out for any suspicious things.

How Do I Start Investing in Property in Australia?

Investing in property is a great way to secure a financial future. Do you want to know how to invest in real estate in Australia? Here are the necessary steps you need to take:

  • Do your research on the Australian housing statistics and property market to understand it better.
  • Once you do that, you’ll need to find a good lender. With many different lenders out there, it’s important to compare interest rates and loan terms before making a decision. 
  • Once you’ve found a loan that meets your needs, you can start looking for properties. 
  • When you’re ready to make an offer, be sure that you calculated all the extra fees (e.g. renovation, repairment, etc.).

Getting an Investment Property Loan

When it comes to taking out a loan, it’s important to get the one that suits your needs best; choosing the wrong one can end up costing you more in the long run. If you want to invest in a property, you need an investment property/home loan.

Many lenders offer investment property loans, with each one setting its own terms and conditions. There are a few things you should pay close attention to:

  • Interest rates
  • Terms
  • Extra fees
  • Penalties

To get the best possible offer, it’s best to research offers from multiple lenders. Additionally, to be aware of the actual payments you’d be making, pay attention to home loan comparison rates.

Making an Investment in Property in Australia – Pros and Cons 

If you’re looking to invest in property in Australia, you need to know all of the pros and cons that come with it:


  • Tax deductions – when you invest in a property, you can get many tax deductions, including deductions for interest payments, repairs and maintenance, and depreciation.
  • Income (rents) – by renting a property you’ve purchased, you may be able to use the rent for loan repayments and even save some money. If you still choose to rent after repaying a loan, renting can be a source of income.
  • Capital growth – investing in property can be a great way to generate capital growth; as the value of your property increases, so does the value of your investment.


  • Not liquid – when investing, many people do it hoping they’ll get a quick return on investment in the form of money(cash). However, with property investment, you cannot “convert” a property into cash that easily (if you want to sell or rent, you may wait for a long while to get the invested money back and turn a profit).
  • Loss of value – over time, a property can lose its value due to many factors. Therefore, once smart investment can, over time, turn into a bad one (especially if the property gets damaged).
  • Vacancy – if you’re planning on investing in a property, taking out a loan, and renting the property to repay the loan, you should make sure your property is never vacant and that you always receive rent. Otherwise, you won’t be able to repay the loan, as there will be no money flowing from rent to repay it.

Best Place to Buy Investment Property in Australia

When investing in a property in Australia, many people decide on purchasing a home in different suburbs of Australia’s biggest cities. Let’s take a look at some of the best places in Australia and most welcoming suburbs to invest in: 

Best Suburbs to Invest in Sydney

  • Bass Hill
  • Darlinghurst
  • Cherrybrook
  • Jamisontown
  • Miranda
  • Minto

Best Suburbs to Invest in Melbourne

  • Caulfield
  • Bentleigh
  • Hampton
  • Ormond
  • Brighton
  • Parkdale

Best Suburbs to Invest in NSW

  • Blue Haven
  • Singleton Heights
  • Warners Bay
  • Cessnock
  • Tolland
  • Toukley

Best Suburbs to Invest in Perth

  • Baldivis
  • Ellenbrook
  • Orelia
  • Wellard
  • Balga
  • Clarkson

So, Is It Worth Investing in Australian Real Estate?

There are many reasons why buying the property Down Under could be a wise decision. Aside from buying your dream house, you can also think about renting for a while, which can also be one source of residual income. Now that you know how to invest in property in Australia, you can dip your toes into the market and start investing! With stable housing prices, a growing economy, and plenty of opportunities for rental income, Australian real estate is looking pretty good right now.


​​1. Is property the best investment in Australia?

Many Australians see property investments as one of the best investments to make. Buying property is seen as the best investment for several reasons, mainly because a property’s value can go up, you can earn an income through rent, and because this gives you the opportunity to build equity.

2. How much deposit do I need for an investment property in Australia?

If you want to avoid paying lenders’ mortgage insurance, you need to put a 20% deposit on your investor home loan. There is also the possibility to add only a 10% deposit, but you’ll need to pay LMI. 

3. How do I start investing in real estate with little money in Australia?

If you want to know how to invest in property in Australia with little money, you should know that there are actions you can take to get additional funds to buy property, such as:

  • Use your current home’s equity
  • Take out a guarantor loan
  • Invest through a real estate investment group

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