How do I start a property investment in Australia?

Published 24 Oct 2022 | Updated August 9th, 2023 3 min read by Property Ducks Have you ever considered investing in properties to grow your wealth?
Would you like to retire ten years earlier than you should?
Are you interested in buying an investment property but don’t know where to start?
Does the process sound overwhelming and complicated?
All the information you research on the Internet creates promises that are hard to believe.

If you answered YES to at least two of the questions above, no worries, you’re in good hands now!

Where to start your property investment?

We have divided the process into four steps that are easy to understand.

1. Get help!
2. Organise your finances
3. Choose your Strategy
4. Do your research

1. Get help!
The success rate will be higher if you get the advice of experts. Doing property investment solo could mean losing money and not having a satisfactory experience. At Property Ducks, we offer the advice you need to reduce the risks and increase the performance of your inversion. After matching you with the right property, we’ll guide you through the entire process – from finance to conveyancing to property management – working hand-in-hand with our reliable service partners.

Be aware that you need the expertise of the following professionals:

• Mortgage Broker
• Accountant
• Conveyancer
• Insurance Broker
• Quantity Surveyor
• Building Inspector
• Property Manager

At Property Ducks, we ensure all these experts work together for a common goal: Your financial success in property investment.
Sounds good? Contact our Property Ducks advisers here.

2. Organise your finances
The second step is to identify your investment capacity. Detect all your sources of income (salary, bonus, savings, shares, equity, and any income you receive regularly). Then deduct all your expenses (credit cards, bills, rent, mortgage, loans, insurance, groceries, school, car maintenance, shopping, and entertainment). Online tools can help you with this task (for example, Money Smart – Budget Planner).

You can make a checklist before moving forward:

• Have you calculated all your sources of income?
• Have you covered all your needs?
• Have you cut unnecessary expenses?
• Have you reserved some money for entertainment?
• Do you have enough money to pay a deposit (see How much do I need to buy an investment property in Australia?)
• Do you know how much you can afford for monthly repayments?

Our finance team will look at your financial situation in more detail to assist you with the best outcome to maximise your investment.
Once you tick all the boxes, it’s time to Choose your Strategy.

3. Choose your Strategy
There is more than one way to invest in properties and develop your wealth. The most common property investment strategies are Capital growth, Cash-flow, and Renovation.

Capital growth: This is a long-term strategy that consists of buying a property, waiting until the value increases and then selling it again.

Cash-flow: Cash-flow strategy focus on buying a property, where the value produced for renting the property is higher than the mortgage repayments. This strategy is suitable for getting an extra income monthly.

Renovation: Renovation means buying an estate at a low price, investing in renovations to increase the price, and then selling it a few months later at a higher price. When choosing this strategy is key to keeping control of the budget and the type of remodelling to get an attractive revenue at the end.

Choosing a strategy should not be a headache, and we will guide you through the process.

4. Do your research
Property investment is a compelling way to create wealth. However, there are risks that you should consider before buying. We recommend you research the location, the type of properties available to buy, the growth capacity, the vacancy rate, and future developments.

We know this is not an easy part, but it is necessary. That is why we are here to help you. We have access to reports that would guide you to take the right decision.

Are you ready to start your journey?