How to kick-start property investing without a huge deposit

By Redom Syed

If you're looking to get into property investing, or just starting to build your portfolio, I want to share a few things I've learned along the way - often the hard way!

Think of this as a friendly reminder about what really matters when you're beginning.

1. The market doesn't wait for you

This is a tough one, but so important.

Many of us think we'll save up a big 20 per cent deposit before jumping in. I've met folks in their 20's with good incomes and substantial savings, but that money is just sitting there, not working for them.

The reality is, inflation often erodes savings, and property markets in some areas can rise faster than you can save. House prices have been outpacing incomes for decades.

Key takeaway: Time in the market is often more crucial than trying to perfectly time the market.

2. Learn from experts, but you're the boss

There's so much information out there today, which is great. You can learn a lot from people who've been there and done that. I share everything I know to help you make better decisions.

Absorb the knowledge, get the insights on strategy or specific areas, but ultimately, you need to be comfortable with your choices. Build a network, find a community, but always remember you're driving your investment journey.

Key takeaway: Use expert advice to get smarter, but always make your own informed decisions.

3. Protect your starting capital

If you're starting with a limited amount of money, every dollar is precious.

Spending thousands on experts or courses right at the beginning can really eat into your deposit - money that could be an actual investment.

If you can, learn the ropes yourself for that first property.

Buying a course isn't the action; buying an asset that can grow is.

Key takeaway: Be careful where your initial capital goes. Prioritise getting into an asset, and use cost-effective ways to learn.

4. Smaller deposits can be enough to start

Think you absolutely need that 20per cent deposit? Not always. It's possible to get into the market with less.

For instance, we've helped people invest with 6 per cent deposits from major banks, instead of the traditional 20 per cent. For a $300,000 property, that might mean needing around $35,000 (plus stamp duty) to get started.

These options might have different risks or costs, but they are options that can get you into the market sooner, especially if you don't have a huge deposit saved up.

Key takeaway: Don't assume you're priced out. Explore all your financing options; you might be surprised.

5. Find ways to grow your deposit faster

If you're doing this on your own without a lot of help, you may want to get creative getting your initial deposit ready. Saving diligently is important, no doubt. Sacrifices are often part of the early journey.

But also look at increasing your income. Think about side projects or skills you can monetize.

Key takeaway: Don't just focus on cutting costs; actively look for ways to increase your income to reach your deposit goal sooner.

It's about taking action

The main message through all of this? Taking informed action is what makes the difference. Knowledge is important, but applying it is what builds your financial future.

I hope these insights help you move forward with a bit more clarity on your property journey.

On a budget? Try View.com.au's affordability search

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Redom Syed is a leading mortgage broker, property investor, and co-founder of FlintInvest and flintgroup.au. A former Treasury economist, he combines deep financial expertise with real-world investing experience, helping thousands of Australians build wealth through property.