iscover
We’ve spent the past two decades helping thousands of Australians make smarter property decisions. We’ve seen what works (and what doesn’t) and if there’s one lesson that stands the test of time, it’s this: not all property is created equal. In fact, choosing the wrong property, even if you get the timing or location “right”, can stall your portfolio before it’s had a chance to grow.
Whereas, choosing the right asset can make the difference between just “being in the market” and actually building long-term wealth. That’s where the art of asset selection comes in.
Why the property itself matters
You can buy in the right suburb and still pick the wrong asset. We’ve seen it time and time again: two properties in the same postcode, bought in the same year, with wildly different outcomes 10 years down the track. One might have strong capital growth, high tenant demand, and minimal maintenance headaches. The other might barely keep up with inflation and need ongoing injections of cash just to stay afloat.
The difference? The quality of the asset. Not the postcode. Not the median price. Not the auction clearance rate. And in today’s market with tighter lending, rising interest rates, and cautious buyers, choosing the right property has never been more important.
What makes a ‘good’ investment property?
There’s no single checklist that guarantees success, but we believe in three golden principles that underpin smart asset selection:
1. Owner-occupier appeal
This might sound odd if you’re buying as an investor, but stay with us. The best long-term capital growth typically comes from properties that appeal to owner-occupiers.
Why? Because they’re the ones who emotionally drive prices up during strong markets. Investors are more rational. Owner-occupiers are more emotional and often more willing to pay a premium to live in a location they love. Look for properties that would make a great home, not just a rental.
That means things like:
- A floor plan that makes sense.
- Natural light and good orientation.
- Access to lifestyle amenities like parks, cafés, or beaches.
- Proximity to quality schools or transport.
- A strong neighbourhood vibe that people want to be part of.
2. Scarcity
Supply and demand drive all markets and property is no different. If your property is one of a kind (or one of very few), you’re more likely to attract buyers and tenants in any market. But if your property is one of 200 nearly identical units in a high-rise apartment block, then there’s nothing stopping buyers or renters from choosing a cheaper one down the hall.
True scarcity might look like:
- A period home with original character features.
- A renovated town house in a tightly held suburb.
- A freestanding house on a quiet street in an established area.
3. Investment fundamentals
Yes, emotion plays a role – but the numbers still have to stack up. Smart investors run the numbers before falling in love with a property.
That means understanding:
- Cash flow (what it costs you to hold the property).
- Rental demand in the area.
- Vacancy rates.
- Local economic drivers (employment, infrastructure, gentrification).
- Maintenance obligations and future capital expenditure.
Why new isn’t always better
A common trap we see (especially among first-time investors) is the assumption that new means better. Off-the-plan apartments or house-and-land packages often come with slick brochures, rental guarantees, and tax depreciation perks. But many of these assets suffer from poor capital growth because they lack scarcity, are oversupplied, or are built in areas with weak owner-occupier demand.
We’re not saying all new properties are bad, but they should be assessed with caution and never chosen purely for tax benefits. Remember: tax perks are the cherry on top of a good investment – they should never be the whole cake.
It’s not just about price: It’s about performance
Too often, we see investors obsess over buying “cheap”. But price alone doesn’t determine value. A $400,000 property that underperforms is still a poor investment, even if it looks affordable.
Instead, think like a long-term business owner. Ask: “What asset will give me the strongest, most consistent return over time?” Sometimes, that means paying a bit more upfront for a better-quality asset because, in property, the cheapest decision today can become the most expensive one tomorrow.
Final thought: Buy once, buy well
At the end of the day, property investing isn’t about how many properties you own; it’s about how well they perform. A single high-quality investment can often outperform two or three lower-grade properties that come with higher holding costs, lower growth, and greater headaches.
So, if we could leave you with one principle, it’s this: buy once, buy well. Focus on the quality of the asset because while it’s not the only ingredient in a successful portfolio, it is a critical one.
Because at the end of the day, the right asset won’t just grow your portfolio – it’ll give you the confidence, clarity, and momentum to keep moving forward. And in this game, that’s what truly sets you apart.
Bryce Holdaway and Ben Kingsley are co-authors of How to Retire on $3,000 a Week: The Property Couch’s Playbook for Passive Property Investing.