Strategies

This approach targets areas with rapid capital growth potential, often due to infrastructure projects, gentrification, or market timing. The goal is to build equity fast over a 2–5 year period, which can then be leveraged for future investments.

Best for: Investors looking to build equity quickly.

Risks: Market timing is critical; short-term market dips can impact returns. Can be in a boom & bust area. 

This classic strategy focuses on blue-chip suburbs and high-demand locations with strong fundamentals like schools, jobs, and transport. These properties typically appreciate steadily over 10–20+ years.

Best for: Long-term investors building generational wealth.

Risks: May be negatively geared in the early years; requires patience.

These properties generate more rental income than they cost to hold. They are often found in regional areas or affordable metro suburbs with strong rental demand. Commercial properties often fit this criteria and LVR can effect outcomes.

Best for: Investors seeking income or financial independence once they have enough capital.

Risks: Slower capital growth; quality tenant management is essential in residential.

This strategy involves renting out rooms individually in a shared house format, often near universities, hospitals, or employment hubs. Co-living setups can deliver very high yields.

Best for: Maximising rental income from a single dwelling.

Risks: Requires local council compliance and active management. 

Adding a second dwelling (e.g., granny flat) to your property can boost rental income and overall yield. This is a great way to make the most out of a single land title.

Best for: Yield-focused investors in suitable council zones.

Risks: Upfront construction costs and council approvals.

Improve the property through renovations, increase rent and value, and hold for the long term. This strategy suits investors who want to force equity growth.

Best for: Hands-on investors with renovation skills.

Risks: Budget blowouts and overcapitalising.

Buy below market value, renovate, and sell for a profit. Quick turnover can lead to fast profits, but also comes with higher tax and risk exposure.

Best for: Experienced investors with strong market knowledge. Suburbs with large variances in prices for similar product.

Risks: Stamp duty, capital gains tax, and potential market shifts.

Split a large block into smaller titles or build additional dwellings. Great for creating multiple income streams or selling developed lots.

Best for: Investors ready to scale and add serious value.

Risks: DA approvals, construction risk, and funding challenges.

Develop or purchase properties designed specifically for rental returns. Often used for new builds in growth areas with high depreciation benefits.

Best for: New home investors or those wanting long-term tenants.

Risks: Initial build costs and market demand forecasting. Budget blowouts and overcapitalising. Developer margins eat up capital growth.

Properties in tourist or inner-city locations rented short-term can produce higher weekly income, though management is more involved.

Best for: Properties in high-demand tourist or CBD areas.

Risks: Regulatory changes, vacancy rates, and management costs.

Rent where you want to live, and invest where it makes financial sense. This hybrid approach is popular with younger buyers in major cities.

Best for: Lifestyle-focused investors who still want to build wealth. Works great in higher median price area that have low rental yields.

Risks: Juggling rent and investment loans; emotional disconnect from the asset.

Buying retail, office, or industrial property can produce higher net yields than residential. Leases are longer and tenants cover more outgoings.

Best for: Advanced investors or SMSFs.

Risks: Longer vacancies, complex valuations, and economic sensitivity.