Dreaming of owning an investment property but worried your bank balance isn’t quite up to scratch? You’re not alone.
For many Australians—especially those who didn’t get a head start from the Bank of Mum and Dad—needing a massive deposit can feel like a brick wall between you and your property goals.
But here’s the good news: you don’t need a mountain of cash to start. In fact, with a bit of know-how, some creative thinking, and a dash of courage, you can kick-start your property investing journey sooner than you might think.
Let’s break down the myths, the must-knows, and the practical steps to get your foot on the property ladder—no matter your age or savings account.
1. The market won’t wait for you
It’s a classic trap: waiting until you’ve saved the ‘perfect’ 20 per cent deposit. But while you’re squirrelling away every spare dollar, the property market is often racing ahead.
House prices in many parts of Australia have been outpacing wage growth for decades. Inflation, too, quietly nibbles away at your savings, meaning the longer you wait, the further away your goal can seem.
The lesson? Time in the market is often more important than timing the market. Getting started—even if not with your dream property—can put you on the path to long-term wealth.
The sooner you own an asset, the sooner you can benefit from capital growth and rental income.
2. Learn from the experts—but trust your gut
There’s no shortage of property gurus, online courses, and ‘can’t-miss’ strategies. While it’s smart to soak up as much knowledge as possible, remember: you’re in the driver’s seat.
Build a network, join online forums, and listen to those who’ve walked the path before you. But at the end of the day, your comfort level and your goals matter most.
Don’t be afraid to ask questions, challenge advice, and do your research. The best investors are lifelong learners who know how to trust their instincts.
3. Protect your precious starting capital
When you’re starting, every dollar counts. It can be tempting to splash out on expensive seminars or ‘insider’ courses, but remember: the real action is buying an asset, not just purchasing information.
Many free or low-cost resources, such as podcasts, books, reputable websites, and community groups, are available.
If you decide to pay for advice, ensure it’s from a qualified, independent professional (like a licensed mortgage broker or financial adviser), not just a slick salesperson.
And always keep your eyes on the prize: getting your money working for you in the market.
4. You don’t always need a 20 per cent deposit
Here’s a little-known secret: you can often enter the property market with much less than the traditional 20 per cent deposit.
Some lenders will accept as little as 5–10 per cent, especially if you’re a first-home buyer or have a substantial income.
Yes, you may need to pay Lenders Mortgage Insurance (LMI), which protects the bank if you default—but for many, this is a small price to pay for getting into the market sooner.
For example, a 6 per cent deposit on a $300,000 property is just $18,000 (plus stamp duty and other costs).
That’s a much more achievable target for many Australians, especially if you’re willing to look outside the big cities or consider units and townhouses.
5. Explore all your options
Don’t forget to check if you’re eligible for government assistance. Schemes like the First Home Guarantee (formerly First Home Loan Deposit Scheme) can help you buy with as little as a 5 per cent deposit, and may even save you from paying LMI.
Some lenders also allow family members to act as guarantors, using the equity in their own home to help you secure a loan.
If you’re over 50 and looking to invest, you may have built up equity in your home that can be leveraged for an investment property, without needing to save a separate deposit.
Saving is essential, but so is boosting your income. Could you take on a side hustle, rent out a spare room, or sell unused items?
Every extra dollar gets you closer to your goal. And don’t underestimate the power of small, consistent savings over time—set up an automatic transfer to a high-interest account and watch your deposit grow.
Consider teaming up with family or friends to buy together, or consider ‘rentvesting’—buying in a more affordable area and renting where you want to live.
At a glance, here’s a quick guide on how to start your property portfolio.
Knowledge is only powerful if you put it into action. The property market rewards those who take informed, calculated risks, not those who wait for the ‘perfect’ moment.
Start small, learn as you go, and remember: your first property doesn’t have to be your forever home. It’s a stepping stone to bigger things.
Have you started your property journey later in life, or found creative ways to build your deposit? Share your tips, questions, or stories in the comments below—we’d love to hear from you!
Also read: First-time investors: Don’t miss these 2025 property pitfalls
