What Makes a Good Investment Property?

Why Yield and Buying Cheap Are Not Enough for Australian Investors

Most people think a good investment property is about yield or buying cheap.

It’s not.

Those things can matter, but on their own they are incomplete. And incomplete thinking is where most first-time property investors in Australia get into trouble.

A good investment property is one that still makes sense when interest rates move, when tenants change, and when the bank reassesses your position in a few years.

The goal isn’t excitement.

The goal is durability.

Buying something that holds up long-term and doesn’t create regret later is what actually builds wealth through property.

Why yield and purchase price can be misleading

Rental yield and entry price are easy numbers to focus on. That’s why many investors default to them.

But they’re snapshots, not systems.

A property with strong yield today can quickly become a problem if interest rates rise, maintenance and holding costs increase, vacancy periods extend, or lending policies tighten when you want to buy again.

Similarly, buying cheap doesn’t automatically mean buying well. Lower prices often reflect risks the market has already accounted for, such as oversupply, weaker owner-occupier demand, or limited long-term growth drivers.

A quality investment property isn’t defined by how it performs in year one. It’s defined by how it behaves across multiple market cycles.

What a good investment property needs to do long-term

A strong investment property should support three things at the same time.

It must fit your borrowing capacity over time

Banks reassess your entire financial position every time you apply for lending. A property that stretches cashflow or relies on optimistic assumptions can limit your ability to borrow again later.

Good investment properties support serviceability, not just purchase approval.

It must align with your long-term investment plan

Buying without a clear strategy is where most mistakes happen.

If you don’t know whether a property is meant to be a foundation asset, a cashflow stabiliser, or a stepping stone to your next purchase, it becomes very easy to choose the wrong type of property, even in a good suburb.

It must make sense through changing market conditions

Markets shift. Interest rates move. Tenants come and go.

A good investment property is one you’re still comfortable holding when conditions aren’t ideal. That usually means strong fundamentals, owner-occupier appeal, and sensible exposure to risk.

This applies whether you’re buying in Mandurah, Perth, or interstate.

Why first-time investors often get this wrong

When people get this wrong, it’s rarely because they’re careless.

It’s because they’re overwhelmed.

Property investing is often presented as simple. Pick a suburb. Find a deal. Chase yield. Act quickly.

In reality, property needs structure.

Without structure, people oversimplify decisions that need context. They focus on metrics instead of strategy. They react to what looks good right now instead of planning for what needs to work later.

That’s where regret usually starts.

Clarity comes before confidence in property investing

Confidence doesn’t come from buying quickly or following someone else’s recommendation.

It comes from knowing why you’re buying a property, how it fits your broader financial position, and what role it plays over the next five to ten years.

When that clarity is missing, even a well-located property can feel uncomfortable.

When clarity is present, decisions become calmer, slower, and far more effective.

That’s the part most first-time investors are never shown.

How Arin Russell Property helps investors make better decisions

At Arin Russell Property, buyers are guided through this decision-making process before a property is ever selected.

Using The Rise Method™, each purchase is assessed against borrowing capacity and future lending considerations, long-term investment goals, and market fundamentals and risk exposure.

Whether a client is investing locally in Mandurah or looking Australia-wide, the focus is always on buying properties that hold up over time, not just those that look attractive today.

Thinking about your first or next investment property

Before looking at suburbs, yields, or listings, it’s worth understanding whether you’re actually ready and what type of property suits your position.

The Personal Property Readiness Score is designed to provide that clarity without pressure or sales tactics.

It helps investors understand where they sit financially, what type of property fits their situation, and whether buying now or waiting makes more sense.

Because in property investing, clarity always comes before confidence.

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