You don’t need to be a genius to build a shining property portfolio. Yes, anyone can start investing in property irrespective of age or wealth. All you need to start is some basic knowledge of the real estate market and a deposit for your mortgage. Here are some top tips to propel your property investment journey:

Top tips for first time property investors

Learn the jargon – First time property investors often find themselves at sea with fancy jargon floating around in the property market. Before you start investing, it is a good idea to brush up your knowledge of the property market by reading online blogs and magazines, attending relevant seminars and networking with experienced property investors. You can also order free property reports online to get a wealth of information about the real estate markets you are interested in exploring. Not only would these sources acquaint you with common investment jargon but also give you information about historical trends and numbers you must know.

(Click here for ten investment terms you must know.)

Find a suitable property – When you are looking for an investment property, you must look for one that meets all your requirements at the lowest price. To ensure this, investors must check latest data for property prices on websites such as CoreLogic. By looking at figures such as rental yield, vacancy rate, past performance of the area and comparable sales, you can get a fair estimate of the value of the property you are interested in. It is also imperative to get building and pest inspections done before buying a property to avoid any issues or costly repairs in the future.

  • Have you checked the location of the property and its proximity to necessary infrastructure and facilities?
  • Do you know the going rate for similar properties in the area, the vacancy rate, and other market information?
  • Have you checked with the local council for any development plans that might affect the property’s value?
  • Are there any problems and defects with the house itself?

Knowing these basic facts will not only help you assess the actual value of the property but also help you negotiate better for a lower price with the lesser.

Look beyond your backyard – Most home buyers prefer to buy in their neighbourhood, failing to capitalise on hot markets in other states. Considering that the property market is non-uniform across the country, it means different property markets follow different cycles, and smart investors can balance capital gains and rental yields by buying properties across borders. However, there are different rules around property buying in various states, and it requires heavy research and a team of experts, including a local property manager, by your side to ensure success.

Crunch the numbers – Buying a property is not a one-time cost. Apart from the price of the property and upfront costs such as stamp duty (calculate here), loan application fees, etc., there are ongoing costs associated with purchasing an investment property such as maintenance costs, property agent fees, strata fees, etc. Many of these ongoing costs are tax deductible (Read more here), including the interest on your repayments. Investors can also take advantage of negative gearing to maintain positive cash flow.

As an investor, you must consider all the above costs before purchasing a property to make sure you can afford it. It is advisable to calculate all the additional expenses as well as the tax deductions to confirm whether the property is a real winner or not. You must also consider the period when the property might remain vacant.

Seek Professional Help – Having a team of experts by your side is indispensable for success as a property investor. This includes having an experienced property agent on your team who knows the locality inside out to help you find the right property at the right price; a property manager to handle your property, tenants and repairs, saving you both time and money; and, a mortgage broker who can introduce you the best-fit loans for your requirement at the best possible rates.

Choose the right home loan – Investors must choose a home loan in line with their financial strategy to ensure optimum cash flow. You must decide how you’d like to make the repayments before choosing the type of mortgage for your investment. For example, you could take an interest-only loan for financial flexibility. Or, you can use the equity in an existing property to open a line of credit to fund major renovations or borrow a lump sum to secure the deposit on your loan.

Once you have decided what kind of mortgage you require, you can apply with a lender directly or speak to a mortgage broker to know your options better. Especially with tighter restrictions around investment lending, a mortgage broker with investment experience can introduce you to the best financing options – saving you time and money in the process – at no cost to you!

HashChing is Australia’s first borrower-friendly mortgage marketplace that allows users to compare discounted broker-negotiated mortgage rates from over 80 lenders across Australia, online.


By Vidhu Bajaj,
HashChing Content Writer



HashChing is helping Australians by providing access to the pre-negotiated home loan deals. Obligation free consultation with one of our partner brokers might save you time, hassle and money.

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