Your Questions — Answered
Are you thinking about investing in property but don’t know where to start?
This guide walks through some questions I hear from new investors — in plain English, without the jargon. You can submit your question at the bottom of the page.
Are Investment Properties Safe to Buy?
Yes — as long as you know what you are doingt and buy the right property in the right location.
That means a home-owner-quality property (not high rise apartment or niche property like student accommodation) in an area with long-term population growth. If the government’s building infrastructure nearby — roads, schools, hospitals — that’s a good sign.
Before you commit, speak to someone independent. It’s easy to make a costly mistake by following the wrong advice.
How Does Buying an Investment Property Work?
Here’s the short version:
- Start with a deposit — from your savings or from equity in another property.
- Speak to a mortgage broker or lender about pre-approval.
- Look for a location with good growth potential and reliable rental demand.
- Understand the numbers: your cash flow, tax deductions, and long-term outlook.
- Buy something a homeowner will want to buy when you sell.
What Value Property Can I Afford?
It depends on your deposit and borrowing power.
As a general guide:
A $100,000 deposit may allow you to buy a property worth between $400,000 and $1,000,000 — depending on your income and your lender.
Just make sure you understand how the after-tax cash flow will impact your lifestyle.
Can I Buy Without a Cash Deposit?
Yes — if you or a family member has equity in another property, the bank might allow you to use that as a deposit.
This is often done through a guarantor loan, and it can be a useful way to get started without cash savings.
Do I Need a 20% Deposit?
No. Some lenders will let you buy with as little as 5% deposit — plus 5% in costs.
Just keep in mind that if you borrow more than 80%, you’ll need to pay Lenders Mortgage Insurance (LMI). This protects the lender, not you.
Can I Team Up With Someone Else?
Yes — buying with a friend, family member, or partner is one way to get into the market sooner.
Just make sure you agree in advance — and ideally in writing — how long you’ll hold the property, what happens if someone wants to sell, and how costs will be split.
I Have a High Income But No Deposit. What Are My Options?
You still have options. You could:
- Team up with someone who does have a deposit or equity
- Use a guarantor loan if someone is willing to support you
Talk to an investment-focused broker or adviser who understands how to structure this properly.
Are Interest Rates Higher on Investment Properties?
Yes — they’re usually slightly higher than for owner-occupiers.
But remember, the interest is generally tax-deductible. That means your after-tax cost is lower than it looks on paper.
Will I Lose My First Home Buyer Grant?
No — not if you’re buying an investment property first.
You can still apply for the First Home Owner Grant later when you buy a property to live in.
Want Help Getting Started?
You don’t have to work it out alone.
For over 20 years, I’ve helped Australians buy the right kind of investment property — low risk, long-term, and tailored to their financial goals.
If you’ve got questions, we’ll talk it through. No sales pitch. Just advice that works.
Do you have a question? Submit it here.
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