A deposit equivalent to 12% – 20% of the property purchase price is preferred if one is looking to safely invest in a property.
This can be in the form of a cash deposit, equity in a home, or any other form. If one was looking to purchase an investment property worth $600,000, a deposit or equity amount of $100,000 would be ideal. This would allow for a 12% ($72,000) deposit and what is also known as purchase costs ($ 20,000) depending on the type of property purchased.
These purchase costs generally include stamp duty fees, solicitors fees, and loan costs and are payable by the investor upon settlement of the property.