One of the most common questions from first-time property investors in Australia is some version of: “I’ve got $50,000 / $80,000 / $100,000 — is it enough to get started?” The short answer is: it depends on what you’re buying and how you structure it. The longer answer is this guide.
First: You Need More Than Just the Deposit
Before anything else, understand that the deposit is not the only cash you need. Every property purchase comes with purchase costs on top of the deposit — stamp duty, conveyancing, building and pest inspections, and potentially loan fees. In most states, these add 3–5% to the purchase price.
On a $400,000 property in Queensland, for example, stamp duty alone is around $8,750 for an investment purchase. Add $1,500 for conveyancing, $600 for a building inspection, and $500 for miscellaneous, and you’re adding roughly $11,000–$12,000 in purchase costs beyond the deposit.
Then there’s the cash buffer you should hold after purchase — at minimum three months of mortgage repayments and running costs — to cover vacancies, repairs, or rate rises without being forced into a bad decision.
With that context, here’s what different amounts actually get you.
What You Can Do with $50,000
A $50,000 deposit is enough to buy an investment property in Australia — but your options are narrower, and you’ll almost certainly be paying Lenders Mortgage Insurance (LMI).
Here’s why: a 20% deposit on a $250,000 property is $50,000. Properties at that price point exist in regional areas of Queensland, South Australia, Western Australia, and parts of regional NSW and Victoria. If you’re comfortable buying regional, $50,000 can get you to a 20% deposit without LMI.
If you want to buy in or near a metro area, $50,000 as a 10% deposit gets you to a $500,000 property — but you’ll pay LMI. On a $500,000 purchase with a 10% deposit (90% LVR), LMI can cost $10,000–$16,000 depending on the lender and insurer. This is typically added to the loan rather than paid upfront.
At this deposit level, you also need to be careful that $50,000 is your deposit and you have enough separately for purchase costs and a buffer. Don’t go into settlement with zero cash reserves.
What You Can Do with $100,000
$100,000 gives you meaningful flexibility. You can:
- Put down 20% on a property up to $500,000 (avoiding LMI) with enough left for purchase costs in most states
- Put down 10–15% on a property up to $700,000–$800,000 (with LMI) while retaining a cash buffer
- Access cheaper interest rates — lenders offer better rates at 80% LVR than at 90% LVR
In most Australian capital cities, $100,000 puts a house or townhouse within reach in outer suburbs or regional cities, and a unit in most middle-ring suburbs within reach. In Perth, Adelaide, or regional centres with strong fundamentals, $100,000 opens up good investment-grade stock.
LMI: The Fee That Can Actually Work in Your Favour
Lenders Mortgage Insurance (LMI) is often treated as something to avoid at all costs. That’s not always the right framing.
LMI protects the lender if you default, and you pay for it. But paying LMI allows you to buy a property with a smaller deposit — which means you get into the market earlier. If property values rise while you’re saving the extra deposit to hit 20%, the cost of waiting can exceed the cost of the LMI premium.
Example: If a property is $600,000 today and values rise 7% in the time it takes you to save an extra $40,000 to reach a 20% deposit, the property is now $642,000. You’re paying $42,000 more for the same asset — likely more than the LMI would have cost.
The calculation depends on the market and the timing. In a flat or falling market, saving to 20% and avoiding LMI makes more sense. In a rising market, LMI can be the cheaper option over the medium term.
Using Home Equity Instead of Cash
If you own a home with equity, you may not need to save a deposit at all — you can use the equity in your existing property as security for the investment property purchase.
This works as a standalone equity release (refinancing your existing loan to pull out equity as a deposit for the new property) or as a cross-collateralised loan (using both properties as security — though this has downsides that are worth understanding separately).
If your home has gone up in value and you’ve been paying it down for a few years, you may already have enough accessible equity to fund a full 20% deposit without touching your savings at all. Talk to a mortgage broker about your current LVR and available equity.
The Guarantor Option
A family guarantee — where a parent or other family member offers equity in their property as additional security — can allow you to borrow up to 100% of the purchase price without paying LMI, depending on the lender.
This only works if a family member is willing and able to put their property on the line, and it carries risk for the guarantor if you can’t service the loan. It’s a genuine option for some first-time investors with supportive family who have equity, but it requires everyone to go in with eyes open.
Rentvesting: The Strategy That Changes the Equation
Rentvesting — renting where you live while owning an investment property elsewhere — is particularly relevant for investors with smaller deposits.
By choosing to buy in a market where your deposit goes further (regional, outer suburbs, or interstate), rather than trying to buy in an expensive area you’d love to live in, you can get into the market sooner, with a better deposit-to-purchase-price ratio, and often with better rental yield. You continue renting in your preferred location while your investment property does the work.
The trade-off: you don’t get the lifestyle benefit of owning your home. The financial case can be strong though — especially in cities where owning costs significantly more than renting the same property.
What You Actually Need Beyond the Deposit
Here’s a realistic budget breakdown for a $450,000 investment property purchase in Queensland with a 20% deposit:
- Deposit (20%): $90,000
- Stamp duty (QLD investor rate): ~$14,175
- Conveyancing: ~$1,500
- Building and pest inspection: ~$600
- Loan establishment fees: ~$500–$1,000
- Landlord insurance (first year): ~$1,200
- Cash buffer (3 months repayments + costs): ~$8,000–$10,000
- Total cash needed: approximately $116,000–$118,000
Stamp duty varies significantly by state and whether you qualify for any exemptions. NT and VIC typically have higher stamp duty on investment purchases; QLD and WA are often lower.
Strategies to Build Your Deposit Faster
If you’re not quite there yet, the most effective deposit-building strategies are straightforward:
- High-interest savings account: Park your deposit savings in the highest-rate account you can find. 5%+ rates are available in Australia as of 2026 for bonus-rate savings accounts.
- Separate the deposit from your everyday account: Out of sight, out of mind. Make it slightly annoying to access.
- Automate the savings transfer: Move money to savings the day your pay lands — don’t rely on whatever’s left at the end of the month.
- Set a target date, not just a target amount: “I want $100,000 by January 2027” is more actionable than “I want to save $100,000 eventually.”
- Salary sacrifice into super is NOT a good short-term deposit strategy: Super is locked until preservation age. Keep deposit savings accessible.
The Bottom Line
A small deposit isn’t a barrier to property investment in Australia — it’s a constraint that shapes your strategy. With $50,000, regional property or a metro unit with LMI is achievable. With $100,000, you can reach a 20% deposit on a $450,000–$500,000 property in many markets without LMI. Existing home equity changes the equation entirely.
The key is working backwards from what you have to what you can buy, rather than waiting indefinitely for a number that feels “safe enough.” Get your borrowing capacity assessed, understand your purchase cost requirements for your target state, and build your plan from there.
If you haven’t already, read our step-by-step guide to buying your first investment property — it covers finance, location, due diligence, and the most common mistakes in detail.
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General Advice Warning: This article is general in nature and does not constitute personal financial advice. Please consult a licensed financial adviser before making investment decisions.
