• Real Finance

7 Costs To Consider When Building A Property Portfolio

Updated: Jul 2

When buying property for investment purposes there are various costs that you should consider as an investor. It's incredibly important to understand your numbers to determine what money is coming in and what expenses are going out. In this article we will share our top seven costs to consider when real estate investing.

As real estate investors, ourselves, we want to set our clients up for success. To do so we spend a lot of time analysing their finances and data from a cash flow perspective. We also look at the expected tax benefits that the investment property can produce for them. This then allows us to determine the projected growth from the property over a period of time. A few of the costs that we forecast for our clients are listed below:

Interest Rates

When buying property for investment purposes the main cost that you will need to consider is your interest rate. That is how much money you are allocating to the bank for mortgage repayments on that property. It's incredibly important to structure your lending correctly by consulting with a mortgage broker to ensure that you're getting the best interest rate on the market. Our national team of mortgage brokers work with a panel of over 25 lenders to find the best one for you!

Council Rates

As a property owner (whether you live in it or not) you are required to pay council rates. These are the rates that local councils charge to raise revenue so they can provide their community with services and infrastructure. Council rates will cover waste management, local roads and suburban care. To understand how much you are required to pay in council rates, go to your local government's website.

Water Rates

When buying property you will be required to pay water rates. There are generally two charges that you will be responsible for. They are fixed charges and water consumption charges. Refer to the graph below to understand how these payments work.

Repairs & Maintenance Costs

When you take part in real estate investing, you need to be aware of repairs and maintenance costs across your property portfolio. As a landlord, it's your responsibility to ensure that your property is liveable for tenants and to pay for breakages (if it isn't covered by insurance). It's always a good idea to have some money set aside so that you can cover maintenance costs.


At REIF, we like to advise our investor clients that they should have some money set aside for rare instances when their property is vacant. While rare, especially at the moment with record-low vacancy rates, there may be times where nobody is occupying your property. Furthermore, you may not be receiving a source of income from that property. Just like with your repairs costs, you should have sufficient savings aside for the rare case where your property is not being occupied.


If you have a property portfolio it's advisable that you have home and landlord insurance. This is designed to protect investors against any risks that can occur when renting your property out. Insurance premiums are different depending on where in Australia your property is located.

Property Management

If you aren't managing the day-to-day running of your rental property yourself, you are most likely leaving it to a property manager. A good property manager will ensure that the right tenant is occupying your property and paying their bills on time. If you are paying someone to manage your property, you will need to allocate a small percentage of your weekly rental income to them.

Want To Learn More About Property Investment?

We are assisting clients across Australia with building their property portfolio each day. At REIF, we will hold your hand right from the beginning to end of your investing journey to make the process as seamless as possible. To learn more about what opportunities are available for investors please reach out on the details listed below.

Ph: 1300 130 932


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