Your First Investment Property: A Step-by-Step Checklist
Buying your first investment property is a big step. This checklist covers everything from finance pre-approval to settlement day.
The difference between a successful first investment and an expensive mistake often comes down to preparation. This checklist walks you through every stage of the process — so nothing falls through the cracks.
Phase 1: Set Your Foundation
Define your investment goals — capital growth, cash flow, or both
Determine your investment timeline (5, 10, 15+ years)
Assess your risk tolerance honestly
Review your current financial position: income, savings, existing debt
Understand your borrowing capacity (speak with a mortgage broker)
Decide on your target price range and deposit amount
Choose your investment strategy: buy and hold, renovation, or other
Phase 2: Assemble Your Team
Find a mortgage broker who specialises in investment lending
Engage an accountant with property investment experience
Identify a solicitor or conveyancer for the purchase
Research property managers in your target area
Consider whether a buyer's agent would add value
Phase 3: Get Finance Ready
Obtain formal finance pre-approval
Confirm your deposit amount (including stamp duty and costs)
Understand your loan options: variable, fixed, interest-only
Clarify LMI requirements if your deposit is below 20%
Confirm your borrowing capacity allows for rate increases
Phase 4: Research and Select a Location
Identify target cities and regions with strong fundamentals
Research vacancy rates, days on market, and price growth trends
Assess infrastructure, employment, and population growth
Shortlist 2–3 target suburbs for deeper analysis
Compare rental yields and growth history against your strategy
Phase 5: Find and Assess Properties
Inspect multiple properties in your target area
Assess each property against your investment criteria
Obtain a rental appraisal from a local property manager
Run a cash flow projection for shortlisted properties
Commission a building and pest inspection on your preferred property
For units: obtain and review the strata report
Conduct a title search through your solicitor
Phase 6: Make Your Offer and Exchange
Research comparable sales to determine fair value
Make an offer with appropriate conditions (finance, inspection)
Negotiate price and terms
Have your solicitor review the contract before signing
Pay the deposit on exchange
Satisfy all conditions within the required timeframe
Phase 7: Prepare for Settlement
Finalise your loan documentation with your broker
Arrange building insurance from the contract date
Appoint your property manager and discuss their process
Conduct a pre-settlement inspection
Confirm settlement figures with your solicitor
Arrange transfer of funds for settlement
Phase 8: Post-Settlement
Commission a tax depreciation schedule from a quantity surveyor
Set up a dedicated bank account for property income and expenses
Establish a record-keeping system for all receipts and invoices
Discuss rental pricing and marketing with your property manager
Notify your accountant and begin tracking all deductible expenses
Schedule your first property review in 12 months
Disclaimer: This checklist is for educational purposes only. Always seek professional advice from a qualified financial adviser, accountant, and solicitor before making investment decisions.
Our 5-module course takes you from beginner to confident investor — step by step.