Buying your first investment property in Australia follows the same broad sequence every time: sort your finance, understand the costs, find and assess a property, then work through due diligence to settlement. This guide walks through each step in order, with a deeper guide linked wherever one exists.
For a broader overview of investing in property, see Moneysmart: buying an investment property.
Before you shortlist a property
1. Confirm your finance position
Before you look seriously at any property, get your finance position confirmed. Your lender or mortgage broker is the only one who can tell you how much you can borrow, and pre-approval gives you an indication of that figure before you start making offers.
See how much deposit you need for how deposit requirements work.
2. Work out the full cost, buying and holding
Two different costs are involved. The cost of buying is your deposit plus upfront costs such as stamp duty, legal fees, building and pest inspections and loan establishment costs. The cost of holding is what you pay each year to keep the property: rates, insurance, property management, loan repayments and, if it applies, body corporate or strata fees. Rental income does not automatically cover all of them.
Stamp duty rates, thresholds and concessions differ by state and change over time, so check the rate that applies to your purchase rather than relying on a figure from elsewhere.
See stamp duty compared by state for how it is worked out where you are buying, and body corporate and strata fees for how ongoing strata costs work.
Finding and assessing a property
3. Find properties to assess
Virtual Buyers Agent does not search for or list properties. Properties are found the way most buyers find them: property portals, real estate agents, and sales that are never publicly advertised, found through agents' networks or a buyer's agent.
See do you need a buyer's agent for what a buyer's agent does and does not do.
4. Run the numbers on a real property
Once you have a property in mind, work out its yield and cash flow using your own assumptions for rent, costs, vacancy and finance rather than a market average. A model shows you what happens under the assumptions you enter. It is not a forecast of what will happen.
Example: a $650,000 unit renting for $600 a week has annual rent of $600 × 52 = $31,200. Gross rental yield is rent divided by price: $31,200 ÷ $650,000 × 100 = 4.8%. That is the yield before any costs are taken out. Cash flow then subtracts loan repayments, rates, insurance, management and other running costs from that rental income, using figures you supply.
See how to calculate rental yield and property cash flow analysis for the full workings, including net yield.
5. Check the location and the property itself
Research the suburb using public and government sources: recent sales, planning information and demographic data. Then look closely at the property itself: its condition, layout, and how it compares with similar properties nearby. Flood, bushfire and zoning information for the address is available from your state or local council. Check it directly before you commit.
See how to research a suburb and red flags to look for before you buy.
6. Do your due diligence
Before you commit, three checks matter most: the contract, the building, and, if it applies, the strata or body corporate records.
- Contract and title reviewed by a solicitor or conveyancer
- Building and pest inspection booked with a licensed inspector and read in full
- Strata or body corporate records requested and reviewed, if the property is strata or community titled
- Any special conditions or upcoming special levies noted and questioned
See the due diligence checklist, reading a building inspection report and reading a strata report.
From offer to settlement
7. Make an offer
Properties sell either by private treaty or at auction. In a private treaty sale, you submit an offer, generally through the agent, and can make it subject to conditions such as finance or a satisfactory building inspection. Cooling-off periods, which let a buyer withdraw within a set window, vary by state and by property type: check your state's fair trading or consumer affairs office for the rules that apply. Auctions are different. A successful bid is generally unconditional, and there is no cooling-off period once the hammer falls.
8. From exchange to settlement
Once your offer is accepted, contracts are exchanged and you pay the deposit set out in the contract. Between exchange and settlement, finalise your loan approval, arrange insurance from whichever point the contract makes you responsible for the property, and organise a final inspection shortly before settlement to confirm the property's condition matches the contract. Settlement is when the balance is paid, ownership transfers, and you receive the keys.
Who does what
| Role | Covers |
|---|---|
| Lender or mortgage broker | Confirms how much you can borrow and arranges your loan |
| Conveyancer or solicitor | Reviews the contract and title, and manages settlement |
| Building and pest inspector | Assesses the property's physical condition |
| Property manager | Manages the tenancy once you own the property |
| Registered tax agent | Advises on the tax treatment of your investment |
Tax rules for property investors, including negative gearing and capital gains tax, can change. Check with the ATO or a registered tax agent for how the current rules apply to you.
Doing this in Virtual Buyers Agent
Once you have found a property, add it and work through the same steps inside a five-area Property Hub: Summary, Finances, Location, Documents and Offer, which keeps each one together as you go.
In your Investor Profile, record the most you will pay, the cash you have ready and a weekly out-of-pocket limit. Each property you are tracking is compared against them, and you can save your own calculation assumptions there too.
It does not score the property or tell you to buy it.
Reviewed 28 September 2026.