Dilleen Property Group 2022

Many aspiring property investors are interested in entering the market but are unsure of how much funds they need to purchase their first investment property. Our recommended magic number is $40,000.

In this day and age we are still able to purchase property for $200,000 and some even slightly lower than this amount. If we were to purchase a $200,000 property, a 10% deposit is only $20,000. Taking into account the lender’s mortgage insurance being between $3000 to $4000, stamp duty approximately $5000, pest and building report about $500 and fees associated with buyers agent, solicitor’s cost and government transfer. $40,000 is the best amount to get started with without the fear of falling short in funds.

Self Managed Super Funds (SMSF)

If you plan to invest in property using SMSFs, you should aim to have at least 20% of the property value with the addition costs such as stamp duty and legal costs. For instance, if you are looking to purchase a $200,000 property, you should aim to have $40,000 with an additional $15,000 for stamp duty costs and legal fees associated with your purchase.

If you require assistance or have inquiries about your current funds, you can contact our recommended broker Justin Picker for more information.

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.