Step 1 – Can I afford to invest in property?

Taking the first step to investing in property must be made from a practical point of view. Taking out a mortgage is a contractual obligation and being prepared is important. Having said that, quite simply it is a case of managing your affairs to ensuring your repayments are always covered and that you meet your contractual obligations. Here’s a list of the expenses you need to be aware of if you decide to become a property investor:

Personal expenses – As long as you have a surplus of cash at the end of the week you are moving in the right direction.

Things to take into account

  • Rent
  • Utilities
  • Food
  • Phone/Internet
  • Entertainment
  • Health cover
  • Etc

Investment expenses

Once you have secured your property you will have ongoing expenses in addition to the initial purchase price and assets transfer costs

  • Bank fees
  • Property management costs
  • Rates
  • Body Corporate fees
  • Landlord insurance
  • Maintenance costs
  • Water
  • Mortgage repayments


Step 2 – How much money can I borrow?

Taking the time to work out your budget is the first step to making an application with any lender. The information you provide will be used to ascertain if you can afford a mortgage or in their eyes ‘are you a good credit risk’? While you can expect a more thorough evaluation when you make your submission with a mortgage broker using an online borrowing calculator or using Property Partners’s in-house finance department to run your serviceability is a great start. We suggest using a broker as they understand banking policy and can find the best product to suit you.


Step 3 – I already own a home, how can use the equity in my property to buy my Investment property?

Using the equity in your property is a great way to overcome the issues of having a deposit. If you are diligent you can create an extensive property portfolio by using your capital gains and equity to leverage (borrow) against.



Important information about the content of this website

The information on this website is not personal advice and has been prepared for general information purposes only, from sources believed to be reliable and accurate. It does not, therefore, take into account your personal objectives, financial situation, or needs. Accordingly, before acting or relying on any of the information contained in this website, you should consider whether it is appropriate to you having regard to your objectives, financial situation, and needs, and if you need to seek personal financial advice.