How to Start Property Investing in Australia: What You Actually Need in 2026

How Much Deposit Do You Really Need?

There is no single “correct” deposit size.
Deposit choice is strategic, not a rule of thumb.

Most investors fixate on the idea that they must save a 20% deposit before they can buy. While that approach reduces loan size and interest costs, it often slows long-term portfolio growth.

The trade-off investors need to understand

10% deposits:

• Preserves cash and usable equity
• Allows investors to enter the market sooner
• Can speed up portfolio expansion when used correctly

20% deposits:

• Reduce lender’s mortgage insurance (LMI)
• Lower interest costs
• Often delays the first purchase and future opportunities

The right choice depends on:

• Your borrowing capacity
• Your income stability
• Your long-term investment plan

In many cases, waiting years to save a larger deposit costs more in missed growth than it saves in interest.

How Much Do You Actually Need?

At Search Property, we recommend that clients have approximately $100k in savings or usable equity to purchase an investment property, which will cover the deposit additional costs, including stamp duty, pest and building, and conveyancing. 

Using a lower deposit (not the typical 20% more people think they need) allows property investors to leverage more of the bank's money, enabling them to enter the market faster, experience capital growth sooner, and ultimately grow their property portfolio quicker. 

Getting started also requires:

• A lending structure that supports future purchases
• Clear alignment between budget and target markets
• A clear strategy and plan 

The bigger determinant is borrowing power, not cash alone. Investors with modest savings but strong income and clean structure can often move sooner than those with more cash but poor planning.

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How Long Does It Take to Buy an Investment Property?

Quality property investing is not fast, and that’s a good thing.

While social media can make it look like deals happen overnight, strong investment purchases typically take 2 to 12 weeks from strategy to execution.

This timeframe allows for:

• Market research
• Comparable sales analysis
• Rental demand assessment
• Cash flow modelling
• Risk and downside review

Rushing a purchase usually increases risk, not returns.

Speed without preparation leads to regret.
Preparation allows confident execution when the right opportunity appears.

Why First-Time Investors Often Feel “Stuck”

Many investors delay their first purchase because they feel overwhelmed by conflicting information.

Common thought loops include:

• “What if prices fall?”
• “What if interest rates rise?”
• “What if I buy the wrong area?”

This creates decision paralysis.

Markets don’t wait for certainty, they move while people hesitate.

The goal isn’t to eliminate risk.
It’s to understand and manage it properly.

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What First-Time Property Investors Get Wrong

1. Waiting for certainty

There is no “perfect moment” where all indicators turn green. Every cycle feels uncertain while it’s happening. Investors who wait for clarity often find that prices or lending rules move first.

2. Over-saving instead of planning

Saving without a strategy can actually delay wealth creation. Without understanding borrowing capacity, structure, and sequencing, investors often save far more than necessary.

3. Focusing on suburbs instead of strategy

Asking “Which suburb should I buy in?” before understanding budget, yield, and growth drivers puts the process backwards. Strategy should dictate location, not the other way around.

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What Actually Matters When Starting

Successful first purchases aren’t about luck. They align three fundamentals.

1. Borrowing capacity

Understanding how much you can borrow, and how lenders assess you, sets realistic boundaries and avoids wasted time.

2. Market fundamentals

Strong investment markets share common traits:

• Proven demand
• Limited supply pipelines
• Sustainable rental conditions

These fundamentals matter more than hype or popularity.

3. Long-term strategy

The first property should be chosen with the second and third purchases in mind. Early decisions shape what’s possible later.

When these three elements align, investors create a platform for future growth rather than a single isolated asset.

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The Real Risk of Waiting Too Long To Invest

One of the most overlooked risks in property investing isn’t buying at the wrong time, it’s not buying at all.

Entry prices don’t stand still

Structural undersupply, population growth, and limited construction pipelines mean entry prices tend to grow higher. Investors who delay often find that the same asset simply becomes more expensive to access later.

Borrowing rules can change faster than prices

Changes to servicing, debt-to-income limits, or acceptable structures can reduce borrowing capacity overnight, removing options even when personal finances haven’t changed. Many investors only realise this after they’ve waited too long.

Compounding growth rewards early action

The real advantage of starting early is not just price growth, it’s time in the market. Capital growth compounds on itself, allowing investors to build equity that can be used for future purchases. Without that first asset, there is no compounding effect working in your favour.

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Equity creates future opportunities

Equity is what turns one property into a successful multi-property portfolio. Investors who start earlier gain access to:

• Higher borrowing capacity over time
• More flexibility in strategy
• The ability to move when opportunities appear

Those who wait remain stuck at the starting line, regardless of how much they save.

In property investing, time is a multiplier. The longer you wait to start, the harder it becomes to catch up.

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Ready to Start Investing in Property?

At Search Property, we help Australians create data-driven property investment strategies aligned with long-term wealth goals. Book a FREE investment assessment with Search Property. We’ll discuss your goals and position, and help you build a clear plan to move forward with confidence.