How to Buy Your First Investment Property in Adelaide

Thinking about dipping a toe into property investing? Here's how to skip the guess work and make buying your first investment property in Adelaide simple.

So, you're thinking about buying an investment property in Adelaide.

Whether you’re still renting or already own your own place, one thing’s for sure - there’s no shortage of advice out there.

But most of it is too broad, too complex or written by well-seasoned investors who’ve forgotten what it’s like to start from scratch.

Truth is, deciding to invest in property for the first time is a huge step.

And once the decision has been made to move forward, the biggest question many first-time investors have is how to get started.

The key? Start with a clear goal, get your finance sorted, understand hidden costs, choose a property that fits your long-term plan and, finally, make your way through the buying process.

If all this sounds a bit much? Don’t stress.

In the handy, step-by-step guide below, we’ll walk you through each major milestone so you’ll know exactly what to do and when, so you can move from browsing to buying with confidence.

Let’s get started.

1. Set your goal & budget

“Understand your ‘why’, then make a plan.”

Like any major financial decision, you should begin with a single, clear goal.

When it comes to property investing, you generally have three choices - do you want steady rental income, long-term capital growth or a balance of the two?

Once this decision is made, it’s far easier to put the rest of your plan in place.

And your first task should be to sketch out a basic budget, taking into account what you can realistically afford.

Alongside the deposit, plan for all the other purchase costs that may apply. At minimum, allow for:

• Ongoing mortgage repayments – these will vary based on the type of loan you take out, as well as whether it’s fixed or variable.
• Stamp duty – check your estimate with RevenueSA’s stamp duty calculator (useful early in your planning).
• Conveyancing – your conveyancer will outline their specific fees for handling contracts and all necessary legals.
• Lender costs – application fees and, if borrowing with a small deposit, possible Lenders Mortgage Insurance (LMI).
• Insurance – building cover (and landlord insurance once you have a tenant).
• Council rates – these vary between councils and are usually tied to property value.

Finally, it’s important to stress-test your plan against all the ‘what ifs’.

Ask: What if interest rates rise by 2%? What if the property sits vacant for a few weeks? What if a hot water service fails, a balcony needs fixing or the toilet blocks up?

MoneySmart’s “what to consider” checklist is also a helpful cross-reference when you’re weighing up the costs involved in property investing.

If, after this, you’re certain you can cover the basics, it’s time to start saving for the deposit.

If you’re building a deposit from scratch, keep things simple: set up automatic transfers, cancel any services you won’t miss – think Netflix, YouTube Premium or news subscriptions - and transfer any ‘bonus cash’ (tax returns, bonuses etc.) straight to savings.

Give yourself a clear target and a timeframe so you can stay motivated and keep up momentum.

Of course, if you already own your own home and have built up some equity, you might be able to skip the saving slog and jump straight to pre-approval.

2. Arrange pre-approved finance

“Get your money sorted before you start searching.”

This means getting a loan pre-approval in place so you know what you can realistically spend on an investment property.

The benefits are threefold: it will help keep you focused on properties you can comfortably afford, helps refine your budget and speeds things up when you’re ready to make an offer.

Part of the pre-approval process involves knowing what sort of loans are available, as property investing comes with its own set of financial considerations.

Refer back to your initial budget and use this phase to work out a realistic repayment amount, and build in a buffer should things get tight.

A quick chat with your bank, mortgage broker or financial adviser will help you understand what loan types are available (ie. interest-only vs principal & interest vs investment loans), how much you can borrow, how to manage any equity involved and what’s sensible for your situation.

3. Shortlist locations with potential

“Pick suburbs perfect for renting.”

In a market where demand often outstrips supply, it’s never been more important to choose the right investment property.

But unlike buying a property to live in, the best investment properties aren’t simply the affordable ones that look great, or the ones you can see yourself living in.

Why? Because rather than being a ‘forever home’, you want a property that’s main purpose is to be rented quickly, stays rented and that fits your long-term goal of steady rental income and/or long-term capital growth.

So the best tip we can give is to remove all emotion and think like a tenant first - prioritise practicality over passion.

In Adelaide, the most successful property investors generally shortlist properties in areas that have:

• Access: reliable public transport, plus easy routes to jobs, schools and universities.
• Amenities: supermarkets, health services, parks and entertainment.
• Rentability: a steady pool of potential renters (students, young professionals, families and nearby employers).
• Easy upkeep: simple floorplans, durable finishes and secure parking.
• Capital growth potential: any planned infrastructure projects nearby or signs of gentrification (like new cafes, stores or shopfront upgrades)
• Good rental yields: Ask local property managers or agencies about typical weekly rent and days on market in your chosen areas. However, chase high yield at the expense of tenant demand. A slightly lower yield in a suburb that leases quickly can often be the smarter choice.

4. From selection to contract

“Found ‘the one’? Here’s how to lock it in.”

So you’ve chosen a property that fits your budget, supports your investment plan and ticks all the right boxes.

The next step? Securing the property and getting a signed contract in place.

For off-the-plan or fixed-price developments, like Glenside and Fletcher’s Slip in South Australia, the process is more straightforward than traditional real estate, there’s no back-and-forth negotiation or competing offers. Instead, the focus is on confirming availability, reviewing the contract and ensuring your finance is aligned.

Here’s how it typically works:

1. Secure the property: Once you’ve selected your preferred apartment, townhouse or lot, the selling agent will confirm availability and guide you through reserving the property at the advertised fixed price. At this stage, you’ll also confirm any standard conditions, such as finance approval timeframes and settlement expectations.
2. Read and review the contract: Once the property is secured, you’ll be sent a sales contract. Even though it’s a long document, it’s the most important one. So read it carefully, line by line. If you’ve got any questions, now’s the time to ask them. Have your conveyancer explain things in simple terms before you sign anything, so you know what you’re agreeing to.
3. Form 1 & Cooling Off: Once the contract is signed, you’ll be served what’s known as a Form 1. This is a document that sets out all the key details about the property. From here, you usually have two clear business days to change your mind. This is known as the ‘cooling off’ period, and it generally starts next business day after signing.
4. Confirm finance, insurance & next steps: With contracts in place, your lender can begin progressing from pre-approval toward formal approval, subject to any conditions. Your conveyancer will guide you through the next stages of the process and what milestones to expect as the purchase moves forward, particularly if the property is still under construction.

Once the contract is signed and your cooling-off period has passed, you’re officially locked in – the contract is now considered ‘unconditional’.

The focus now shifts to settlement and making sure everything is in place for day one.

5. Final handover and settlement

“The countdown begins – from unconditional to receiving the keys!”

Between contract signing and settlement, your conveyancer and lender will do most of the heavy lifting when it comes anything financial or legal.

Your job? Make sure you’re available to take their calls and tick off a few final tasks.

• Know your final figures
  You’ll receive a statement that shows what is payable on settlement day. This will include the purchase price balance, government charges - including stamp duty - and any rate or water adjustments. Read it carefully, and if something doesn’t look right, ask now rather than the day before settlement.
• Sign & schedule
  Your conveyancer will send through any final documents for you to sign and send back. It’s important to ensure this is done promptly to avoid holding up the process.
• Do a pre-settlement walk through
  Cedar Woods will organise a time prior to settlement for you to walk through the property. This is an opportunity to experience the space in person, get a feel for the layout, and take any measurements you might need for furniture or appliances. It’s a great moment to start visualising how you’ll set things up once you take ownership. 
• Settlement day
  The big day has arrived! Settlement is when your bank or lender transfers the funds, the title moves into your name and you collect the keys. Once your conveyancer confirms this is all complete, you can organise access and start getting the home set up ready for tenants.

Once the excitement of the sale has settled down, you’ll want to turn your focus to the next phase – managing your new investment.

In the next section, we’ll help you decide the best path forward, so you can start renting it out straight away.

6. Post-settlement management

“Solid management for future success.”

When it comes to the ongoing day-to-day management of your new investment property, you have a few choices.

But the path you choose depends entirely on how hands-on or hands-off you wish to be as a landlord.

Some owners like a DIY approach. They set the rent, prepare the lease, create the listing, meet applicants, choose the tenant, collect the bond, handle repairs, conduct inspections, chase arrears and keep all the records up to date.

This can work if you’ve got the time, you’re organised and you’re comfortable dealing with problems quickly (and fairly). It can also save you management fees over time.

However, there’s a catch. Managing a rental property comes with a whole new set of legal responsibilities that, if mismanaged or misunderstood, can turn into much bigger headaches down the track.

The other option is to hire a professional property manager.

A good property manager earns their keep by reducing vacancies, screening tenants using professional databases, staying on top of maintenance, recommending good landlord insurance policies and keeping all your paperwork both up-to-date and legally compliant.

And because they deal with rental properties day-in, day-out, they have their finger on the pulse when it comes to advising on, and setting, realistic rental rates. Plus, as a bonus, their management fees are usually tax deductable.

There isn’t a single right answer. If you’ve got the bandwidth and expertise, DIY can work. But if you’re aiming to build a small portfolio, a professional property manager usually makes life simpler.

Property investing works best when you keep it practical.

Decide what you want the asset to do for you, run the numbers, build a budget and understand the process.

Do those things and you’ll be able to shift from “thinking about it” to “I know what to do next” - which is exactly when good decisions get made.

At the end of the day, buying your first investment property isn’t about perfection.

But in a world where knowledge and insight counts, being across the basics means you’re already ahead of most first-time investors.

Remember to back yourself to learn as you go, lean on good professionals when you need them, give the plan time to work, and you’ll be well on your way to owning a successful investment!

Still unsure where (or how) to start your journey? MoneySmart’s handy guides help explain the basics of property investing in more detail.

Cedar Woods Properties is a leading, national developer of residential communities and commercial developments.

We strive to create quality homes, workplaces and communities that people are proud of.

With award-winning projects in Western Australian, Victoria, Queensland and South Australia, we continue to place great importance on understanding our customers and their lifestyle, producing design solutions to enrich their lives.

For more than 30 years we have worked hard to think ahead, evolving our designs to always respond to the changing world in which we live and creating meaningful places that inspire connection and help us grow.

We work with our customers every step of the way to create a solid foundation for their future.

Because at Cedar Woods we know we are developing tomorrow, today.