First-time Property Investors


A beginners guide to investing in residential property

Purchasing an investment property for the first time can be quite daunting. You may have an owner/occupied property with enough equity in it to contribute towards the purchase of an investment property OR you may wish to continue renting or living at home and purchase a property for investment.

You're probably uncertain as to whether you have sufficient equity to contribute towards an investment property and how much the purchase will affect your cash flow and standard of living. Most people wish to hold the property for the long term to provide for future wealth. Usually this means not selling your investment property until you retire, but our clients have used property investment to fund a variety of goals such as putting their children through university.

There are some vitally important basic rules to follow, which will determine whether your first property investment is successful or not:

  1. Use a specialist team to guide you through the process. This can include a property investment adviser, mortgage broker, accountant, conveyancer, property manager and financial adviser. The risks will be reduced and your first purchase will be more enjoyable.
  2. Make your property investment decisions based on logic and research rather than emotion. This is an investment, not where you are going to live.
  3. Do not be tempted to purchase an investment property in regional areas just because there are strong rental returns in that area. Capital growth is vital to provide for your future wealth. ­ Growth may not happen in regional areas, or it  can be very uneven.
  4. Diversification is important. If you already own property (e.g. your home) you should consider if there is a better location where you could purchase an investment property.
  5. Ensure the finance is established correctly. This means you won’t have to "unravel" incorrectly structured finance at a later date (a time-wasting and expensive business).
  6. Set written goals – a formal plan will improve your ability to succeed!
  7. STOP PROCRASTINATING! Start your investment journey now – so many people do nothing. The possible result of doing nothing? A retirement income that barely meets even basic needs.


For further details about these important rules and other tips about property investment, please refer to 'Our Guides', subscribe to our newsletter or book an obligation free appointment.