How Much Do I need to Invest in Australian Property?

How much does it cost to invest in Australian property? Costs vary depending on the property you purchase and the market conditions at the time. Expenses include property prices, deposit, additional upfront costs, financing and ongoing costs.

Property Prices

Property prices vary across streets, suburbs and states in addition to the demands of the market at that time for that location. Areas where living is more desirable such as central business districts, properties near public transport and schools will be more expensive than those elsewhere. To understand the range of prices you may pay, research properties in the area you are looking to buy in.

Deposit

Generally, a 10-20% deposit is typical for most properties. Some people decide to pay bigger deposits to reduce the amount they owe on their mortgage but this is entirely up to the loans you are eligible for and how much you have saved.

Upfront Costs

In addition to your deposit, there are a few upfront costs to consider when saving for an investment property. These costs include and aren't limited to pest and building inspections, application fees, strata fees and stamp duty.

Financing

There are a variety of financing options available depending on the lender you wish to go with, how much money you have saved, your income status, credit line and borrowing capacity. Talking to a trusted mortgage broker is important to understand how much you can borrow and any additional costs that may incur.