The deposit you need will depend on the property, the amount you're borrowing and the lender's requirements.

A 20% deposit is often used as a starting point because borrowing more than 80% of a property's value can involve additional lending requirements and potentially Lenders Mortgage Insurance (LMI). However, a 20% deposit isn't necessarily required in every situation.

If you already own property, available equity may also be able to form part of the funds needed for your next purchase.

I'll help you work out what your options look like based on your actual position before you start searching for a property.

Your borrowing capacity isn't based on your income alone.

Lenders will consider your income, existing debts, living expenses, other property loans and the proposed investment.

Potential rental income may also be included in the assessment, although how it is treated varies between lenders.

This is one reason borrowing capacity can differ significantly from one lender to another. I'll assess your position and compare suitable lending options before you decide on your purchase budget.

Potentially, yes.

Equity is broadly the difference between the value of your property and the amount you still owe against it. However, having equity doesn't automatically mean all of it is available to borrow.

The amount you may be able to access depends on factors including the property's value, your existing loan balance, your borrowing capacity and the lender's requirements.

I'll help you work out how much equity may be available and whether using it makes sense for your proposed investment purchase

There isn't one answer that suits every investor.

With an interest-only loan, your required repayments cover the interest for an agreed period without reducing the principal. This generally means lower repayments during the interest-only period, but repayments increase when the loan switches to principal and interest.

With principal and interest repayments, you're reducing the loan balance as you go.

The appropriate structure depends on your circumstances and objectives, so we can compare the lending implications of both options as part of your strategy. For tax implications, you should speak with your accountant or tax adviser.

How you structure your lending can become increasingly important as your property portfolio grows.

Rather than looking at one loan in isolation, I'll consider your existing lending, available equity, proposed purchase and future plans when comparing suitable options.

Where tax implications are involved, I'll recommend you discuss the proposed structure with your accountant or tax adviser before proceeding.

The purchase price and deposit aren't the only costs to consider.

Depending on your purchase, costs can include stamp duty, settlement or conveyancing costs, building and pest inspections and lending-related costs. Once you own the property, you'll also need to allow for expenses such as council and water rates, insurance, property management, maintenance, strata fees where applicable and potentially land tax.

Understanding these costs upfront gives you a much clearer picture of what you can comfortably afford rather than basing your decision on the deposit alone.