Last reviewed: August 2026
Property Investing Starts With the Right Foundation
Getting started in property investing can feel overwhelming, not because the concept is complicated, but because there is a lot of conflicting advice out there. Here is a grounded starting point.
Know your borrowing capacity before you look at listings
Your borrowing capacity depends on your income, existing debts, living expenses, and how lenders assess rental income on the property you are considering. Getting a realistic figure before you start searching prevents wasted time looking at properties outside your reach, or under-shooting what you could actually afford.
Understand loan structure, not just the purchase price
How your investment loan is structured, interest only versus principal and interest, standalone versus cross-collateralised against your home, offset accounts and future serviceability, has a real impact on both your cash flow now and your ability to buy again later.
Factor in the full cost of ownership
Beyond the mortgage, budget for council rates, insurance, property management fees, maintenance, and periods of vacancy. Cash flow surprises are one of the most common reasons new investors feel stretched in the first year.
Think about sequencing, not just the first purchase
If building a portfolio is the goal, the first loan should be structured with the next purchase in mind, not just optimised in isolation. This is where a lot of investors unintentionally limit their own future borrowing capacity.
Understand how lenders view your existing home loan
If you already own your home, your existing mortgage doesn't disappear from the equation just because you're applying for a second loan. Lenders factor in your current repayments, and often your full available credit limits on any credit cards, when assessing what you can service on a new investment loan. This is why paying down existing debt or reducing unused credit limits before applying can sometimes have a bigger impact on your investment borrowing capacity than the rental income of the new property itself.
How we help
We start with your borrowing capacity and your goals, then structure the loan around where you are trying to get to, not just the property in front of you.
Useful tools and resources
For general ASIC guidance on home and investment loans, see the Moneysmart home loans hub.
To get a realistic starting figure before you begin searching, try our free Borrowing Capacity Calculator.
