Key steps to support your financial wellbeing.
For many people, purchasing an investment property is a milestone on their journey toward long-term financial security. Our resources are designed to help you build your knowledge, confidence, and capability to make decisions aligned with your goals - not just today, but throughout your life.
If you’re exploring whether an investment property might be right for you, here are some practical steps to consider.
Start with your current financial position
Investing in property is a significant financial decision, so begin by understanding your current financial position. Consider:
• Income stability and your ability to manage repayments
• Existing commitments like loans, rent, or childcare costs
• Emergency savings as your safety net for life’s surprises
• Your habits and cash flow confidence.
Knowing your starting point helps ensure any new commitment supports - not strains - your wellbeing.
Clarify your purpose and investment goals
Strong financial wellbeing comes from clarity and alignment with what matters most to you. Ask yourself:
• What do I want this property to achieve?
• Is this long term financial or asset growth?
• Does this align with my personal goals and life stage?
Knowing your ‘why’ can help shape your decisions. Clear goals can also help reduce stress, support better planning, and guide you toward the right property and financing approach.
Build knowledge about the property market
Information can help build confidence. Take time to understand:
• Location trends and rental demand
• Price movements and vacancy rates
• What’s driving growth in the area? - schools, transport, new developments
• Property types and their different maintenance or tenant profiles.
Feeling informed helps you ask the right questions and avoid surprises.
Understand the true cost of investment
A common challenge is underestimating the full cost of property ownership. Be sure to factor in:
• Up front costs like stamp duty, inspection fees, and legal costs
• Ongoing expenses - insurance, rates, management fees
• Maintenance or unexpected repairs
• Periods when the property may be vacant
• The impact of interest rate changes on your budget.
Creating a simple cash flow plan can help you see how the investment fits into your broader financial life.
Explore lending options that support your goals
Loans are tools and choosing the right one for you can make a big difference. Consider:
• Whether interest only or principal & interest repayments fit your cash flow needs
• How fixed or variable rates align with your risk appetite
• The benefits of offset or redraw features
• Whether you have usable equity in an existing property.
Understanding these options helps you feel prepared for conversations with lenders or advisers.
Be aware of tax considerations
Property investment involves several tax elements, such as:
• Declaring rental income
• Claiming eligible expenses
• Depreciation on the building or fixtures
• Future capital gains tax.
Seeking guidance from a qualified accountant can help you understand how these factors influence cash flow and long-term returns.
Help build resilience through risk awareness
Sound financial wellbeing includes understanding and planning for risks. Consider:
• How you’d manage higher interest rates
• How you’d cope if your property was vacant for a few months
• Whether you have the right insurance policies in place
• How unexpected repairs or life events could affect your budget.
This kind of planning helps ensure the investment supports you, rather than becoming a financial burden.
Final thoughts: be informed and invest with confidence
Buying an investment property can be a meaningful step in your financial journey. The key is approaching it with clarity, informed decision making, and a realistic understanding of what’s involved.
Ready to take the next step?
Whether you're buying your first investment property or restructuring a multi-property portfolio, we're here to help. If you have any questions about how investing in property can support your long-term financial goals, visit our investor page, call 13 63 73 or book an appointment with a Home Loan Mentor.
