From Plan to Purchase: Your 6-Step Guide to Buying an Investment Property

Buying your first investment property is an exciting milestone, but the process can feel overwhelming. Where do you start? What comes next? Having a clear roadmap is the key to a smooth and successful journey.

We've refined the investment process into six straightforward steps to give you clarity and confidence from start to finish.

Step 1: Charting Your Financial Strategy

(Timeline: 1-2 weeks)

Before you even think about scrolling through property listings, the first step is to get your financial ducks in a row. This is the foundation of your entire investment journey.

Assess Your Borrowing Power: Talk to your adviser - They will help you understand how much you can realistically borrow based on your income, expenses, and existing debt.

Confirm Your Deposit: For an investment property, you'll typically need a 30% deposit. Explore your options, whether that's from savings, a gift, or leveraging the equity in your existing home.

Set a Budget: Create a budget that accounts for all property ownership costs, ensuring your investment protects your personal cash flow.

Step 2: Crafting Your Investment Plan

(Timeline: Concurrent with Step 1)

With a clear financial picture, it's time to define what success looks like for you. A clear plan ensures you're buying strategically, not on a whim.

Define Your Goals: Are you chasing long-term capital growth, immediate rental income (cash flow), or a balance of both? Your goals will determine the type of property you look for.

Choose a Strategy: Will you Buy and Hold for a decade, or are you looking for a Value-Add property to renovate? A clear strategy narrows your focus.

Step 3: Securing Your Pre-Approval

(Timeline: 2-4 weeks from starting)

This is where the planning phase turns into action. A mortgage pre-approval is a conditional confirmation from a lender that you can borrow a certain amount. It's your green light to start searching seriously. Note: Sometimes pre-approval may not be available in which case banks may grant full approval on a live deal.

Let your MA handle the Paperwork: Your mortgage adviser will package your application and present it to the right lenders, finding the most competitive rates and suitable loan structures for your investment strategy.

Step 4: The Property Hunt

(Timeline: 4-12 weeks, or as long as it takes)

With pre-approval in your back pocket, the fun begins! You can now attend open homes and make offers with confidence.

Search with Purpose: Use your investment strategy and checklist to logically assess properties. Don't get distracted by emotion.

Lean on your team: Talk to your MA, real estate agent, accountant, solicitor - They can provide financial insights on potential properties, helping you analyse the numbers to ensure they stack up before you make an offer.

Step 5: Making an Offer and Due Diligence

(Timeline: 2-3 weeks)

Once you've found a property that ticks all the boxes, it's time to make an offer. If your offer is accepted, the due diligence period begins.

Conditions are Key: Your offer should be conditional on things like a satisfactory builder's report, LIM report, and securing formal finance.

Finalising the Finance: Your mortgage adviser will work with the lender to get your pre-approval converted into a formal, unconditional loan offer.

Step 6: Settlement and Beyond

(Timeline: Settlement day is typically 4-6 weeks after the offer goes unconditional)

Settlement day is when the property officially becomes yours. Your solicitor will handle the transfer of funds and title.

Ready to Take the First Step?

Building a property portfolio is a journey of a thousand small steps, but it all starts with one: a conversation. Book a free, no-obligation discovery call with our team, and let's map out your path to success.