1. Location is important
Location and property type directly impact rental income and capital growth.
- Choose areas close to public transport, CBD access, schools, parks, and retail precincts.
- Match property type to demand:
- Freestanding homes attract families and often offer stronger growth
- Apartments near universities or business hubs suit professionals and students.
- Check for extra costs like body corporate fees before buying.
2. Ensure the price is right
Paying the right price sets the foundation for growth.
- Compare recent sales and rental data in your target area
- Look for “next-in-line” suburbs near hotspots for potential growth
- Use resources like Real Estate Institute of Victoria’s (REIV’s) quarterly reports for median rents and property values
- Consider a professional valuation-our home loan mentors can help.
3. Understand rental returns
Your rental income strategy matters.
- Negative gearing: Accept short-term losses for tax benefits and long-term capital growth
- Positive cash flow: Aim for rental income that covers costs like loan repayments, maintenance, council rates, and insurance
4. Low vacancy rates and long-term appeal
Low vacancy rates signal demand. You could investigate areas with strong local economies and low vacancies.
- Properties with timeless features for example, large bedrooms, storage, off-street parking could be appealing.
- Avoid chasing trends-focus on durability and tenant appeal
- Pricing strategy matters: A happy long-term tenant can be more profitable than charging top rent.
5. Keep maintenance costs low
Unexpected repairs can erode profits.
- Get a building inspection before purchase
- Prioritise properties that are structurally sound and easy to maintain
- Regular upkeep helps retain quality tenants and protect your investment.
Bottom line: Successful property investment requires research, planning, and a clear financial strategy. If you’d like tailored advice or a property valuation report, our specialists are here to help.
Ready to take the next step?
Whether you're buying your first investment property or restructuring a multi-property portfolio, we're here to help. Reach out to our BankVic Home Loan Mentors to explore how we can help support your journey toward long-term financial wellbeing.
We’re here to help
If you have any questions about how investing in property can support your long-term financial goals, visit bankvic.com.au/home-buying/investor, call 13 63 73 or book an appointment with a Home Loan Mentor by visiting www.bankvic.com.au/book-appointment.
