When it comes to choosing the right investment property, there are two major factors to consider: what your strategy allows and what potential the property holds. While finding a unicorn property that ticks every box—strong capital growth, high rental yield, low maintenance, great tax benefits, and an affordable price—might seem like a dream, the reality is that, like winning the lottery, it’s rare.
More often, property investors must select an investment that fits their overall strategy, which may mean compromising in one area to benefit from another. Understanding these trade-offs is key to making a smart decision.
Older, established properties are often located in desirable, low-density areas with a strong rental yield. However, they may need renovations before they can be rented out, and ongoing maintenance costs can be higher. Established properties also offer fewer depreciation benefits, which means less in tax savings.
Newer homes, especially in up-and-coming suburbs, often come at a more affordable price and offer lower maintenance costs. They also tend to provide better depreciation benefits, making them attractive from a tax perspective. However, these newer areas may take time to develop, meaning you could experience lower rental yields or slower capital growth in the initial years. But over time, they offer the potential for solid returns, proving that property investment is a long-term commitment.
Off-the-plan properties, such as apartments and townhouses, can combine the benefits of new homes with the advantage of being in more established areas. With a longer settlement period, you have time to save for a larger deposit and even benefit from capital gains—all without the pressure of paying a mortgage immediately. The catch? Upon completion, your property might enter the market at the same time as many others in the same development, which could impact rental yield, so it's important to know that the local rental market will handle this boost in supply.
There’s no single answer to the question of which property is the best investment. Every decision should be considered within the context of your long-term strategy. For example, a modest two-bedroom apartment in a great location might be a stepping stone toward purchasing that dream four-bedroom house on a larger block down the line.
The important thing is not to view properties in isolation but as part of a larger plan. Each purchase should move you closer to achieving your overall investment goals, which is why professional guidance can make all the difference.
At The Property Mentors, we’ve spent over a decade helping Australian investors make smart property decisions. Whether you’re deciding between an older property, a new home, or an off-the-plan apartment, our experience allows us to help you weigh the pros and cons to find the investment that aligns with your strategy.
Book a call with one of our experienced mentors and let us help you navigate your property investment journey. Secure some of Australia’s best investment opportunities with the guidance of experts who have your best interests at heart.
For the next 12 months, buyers in Victoria can save tens of thousands on stamp duty with a new government concession. Here’s how to take advantage of this incredible opportunity before it’s gone.
read more
With the price gap between houses and apartments at a record high, the demand for affordable units is set to increase. Is now the perfect time to invest in an apartment? Here’s why the market is primed for growth.
read more
With Christmas just 71 days away and 2025 only 78 days on the horizon, it’s time to stop pushing your property goals further down the road. There’s still time to act before the year ends—here’s how you can make it happen.
read more