A guide by Stephen Vick, former World Kickboxing Champion and Property Investment Specialist, to strategies that Australian investors can use to build a property portfolio.
In my role at National Property Advisory, I assist new entrants break into the property market and work with seasoned investors seeking to take their portfolio to the next level. Over the years, I’ve developed a set of principles that I use to guide clients — principles that come from experience, research, and knowing that every investor has different goals and needs.
My approach to property investment advice is to first truly understand my client. This demands almost psychologist like insight and candor, delving into clients’ financial situations, investment experiences, fears, biases, goals, risk tolerances, values, and the things that are truly important to them. In my experience, failing to consider these factors often leads to undermined strategies, significant financial loss, or even the breakdown of relationships.
Understanding who you are as an investor—or as part of an investing partnership—is key to building a strong property strategy. Beyond having a well-thought-out plan, which I’ll cover more in the next section, successful property investing requires a solid grasp of financial concepts, a vigorous research and due diligence process, consistent market engagement, and regular assessment of your strategy.
Additionally, all investors will need help from professionals to put their strategy into action. It’s essential to work with advisors who communicate clearly and at your level of understanding, so you can make informed, confident decisions that can withstand personal or economic adversity.
I have written a number of articles that provide advice and guidance in these areas, as I think it is essential for both new and experienced investors to have access to as much information and insight as possible. With over 30 years in investment advisory, I can affirm that engaged and informed investors not only achieve superior outcomes but also make rewarding clients.
Where do I start with Property Investment Strategy?
The first step is understanding your financial position, clarifying your goals, and seeing where you currently stand in relation to them. For many, this process can be surprising—sometimes even a wake-up call—but it can also be a powerful motivator. You may even find that reaching your goals doesn’t require as much risk as you thought.
Setting goals doesn’t have to be daunting. It’s fine if your initial goal is simply to buy your first investment property. Or, if you prefer, map out a bigger vision for your ‘best life’ and legacy. Goals will change over time, and that’s perfectly normal; what matters is giving it some thought and taking that first step.
What type of property Venture do I take on?
Aligning your finances and personal situation is key to choosing the right type of property for your portfolio. One of the first questions to ask yourself is, “What kind of property investor am I?” This decision will shape the type of Venture you take on. Are you a Developer, a Flipper, or a Passive Investor?
If you have a high tolerance for risk, plenty of capital, ambitious goals, good mentors, and can dedicate the time, then a more hands-on project like a renovation, a small unit complex, or land development might suit you. But if you’re focused on a career, have some capital limitations, prefer lower stress, and don’t have strong connections in the construction industry, then a long-term passive investment portfolio may be a better fit.
How much do I spend?
Once you’ve decided on your investment venture, the next step is figuring out your budget for the property or project. Most people start by speaking with a bank or mortgage broker. Make sure to discuss any upcoming large expenses, like holidays, a new car, or family events, and make a plan to handle potential changes in your job or personal circumstances. If you’re taking on a renovation or development project, a feasibility assessment should be performed and extra capital set aside for project delays, material increases, labour increases, and other risk factors.
Just because you’re approved for a certain amount doesn’t mean you need to spend it all on a property; think of it as a starting point within your overall strategy. Borrowing power can vary a lot between lenders, so having a knowledgeable mortgage broker on your side is a real asset.
After reviewing your options, consider what you’re comfortable spending and set aside cash or credit buffers. Predictable cash flow is especially important for passive investors, as budget constraints can quickly create stress. Tight cash flow can even force you to sell an investment prematurely, often at a loss. Planning for this will help protect your long-term goals.
What type of property is right for me?
Once you have a clear understanding of your budget and chosen venture, it’s time to think about yield vs growth. Yield is the income your property generates, while growth is how much the property’s value increases over time. These are inevitably a trade-off: higher growth properties usually have lower yields, and vice versa. For long-term investors, growth-focused properties tend to deliver stronger overall returns.
As a passive investor, aim for a yield that supports your strategy without going too high, as a higher yield often comes at the expense of growth potential. This balance will help you narrow down the types of properties that suit your goals, whether it’s residential, commercial, industrial, or a specific property type like a house, unit, or townhouse.
In the end, understanding this trade-off between yield, growth, and your budget is essential for shaping a strategy that works for you and choosing the right property type to match.
What else should be included in my strategy?
There are many tools that can strengthen your investment strategy based on your specific situation. These can include smart funding and debt reduction tactics, tax strategies, varying acquisition methods, risk management plans, and rental management strategies. Getting advice on these areas doesn’t have to be costly, but the impact of skipping professional advice can be significant—sometimes life-changing, for better or worse.
Once your core strategy is in place and you know what kind of property you’re after, take time to research locations, perform your due diligence, and plan ahead with a rental management strategy if leasing is part of your goal. We will cover these things in more detail below.
Where should I invest?
Location is one of the main factors that drive property growth, but a crucial lesson for new (and even seasoned) investors is that finding an investment property isn’t like choosing a family home. What may look like an ideal spot to you might not attract renters, might not fit your financial goals, or could offer limited growth potential. Often, the best investment opportunities are in places—or even States—you wouldn’t necessarily choose to live yourself.
To illustrate the impact of growth rates, consider a property purchased for $1,000,000 and held for 20 years. The difference between a 5% per annum growth rate and a 7% per annum growth rate results in a final property value difference of over $1.2 million. Even a seemingly small variation in growth rates can significantly impact long-term returns, potentially costing investors hundreds of thousands—or even millions—in missed capital appreciation by choosing a suboptimal investment location.
When researching specific locations, look for community essentials like employment opportunities, transport, schools, hospitals, shopping, and lifestyle amenities. However, remember that while population growth and infrastructure spending help drive demand, they don’t guarantee price increases. The basic rule of supply and demand still applies—prices rise when demand is high, and supply is limited.
What is meant by property due diligence?
There are a number of components involved in property due diligence, depending on the property type and stage of completion.
Building – If you’re building or buying off-the-plan, it’s essential to investigate the developer and builder. With high pressure on the construction industry, risks like delays and company bankruptcies are likely to increase in the coming years. Due diligence in this area might include checking credit reports, court records, and key ASIC documents, as well as understanding the builder or developer’s reputation and track record.
A knowledgeable agent or industry professional can assist with this research. Properties closer to completion generally carry lower risk, and there are additional strategies to help reduce risks of involved in buying off-the-plan. I have produced a Masterclass episode specifically on this topic.
Financial – Accurately calculating holding costs is critical. This can involve assessing repair needs through building and pre-settlement inspections, estimating mortgage payments, reviewing body corporate fees, depreciation schedules, rental income estimates, insurance, council rates, vacancy rates, property management fees, ongoing maintenance, and other incidentals. Ideally, perform a sensitivity analysis (using Excel) to see how your holding costs might change with fluctuations in interest rates, rental income, and vacancy rates.
Location – Beyond the location research mentioned earlier, additional due diligence may include checking historic suburb growth rates, income demographics, flood and flight path maps, lifestyle and affluence scores, rezoning proposals, and any relevant development applications.
Legal – Along with hiring a property conveyancer for standard searches, it’s wise to get contract advice. Make sure you understand any property use restrictions, timelines for acquisition milestones, and sunset terms. Additionally, there may be aspects of the community titles scheme that don’t align with your investment strategy, so it’s important to review these closely.
A Buyer’s Agent or Advocate that specializes in investment properties, such as National Property Advisory, should be able to assist you with market research and due diligence. You can watch our Masterclass episode on Managing risk when buying property.
The current state of the property market in Australia for investors
As 2025 rolls on, the latest data suggests that investors are playing an important role in shaping the overall state and direction of the property market in Australia.
For instance, investors have made a significant contribution to an increase in the total value of the Australian residential property market, which is now currently valued at $11 trillion, with CoreLogic reporting that investors made up 38.6% of new home loans in the September quarter, the highest since 2017.
Analysts believe that this high level of investor activity is the result of investors seeing opportunities for capital gains, and a competitive rental market which has resulted in yield growth.
However, these are national figures, and the property market in Australia is actually quite fractured; different states and cities can perform very differently over the same period. Savvy investors will likely focus on areas with strong prospects for long-term growth and, in some cases, government incentives that encourage investment in the sector.
Other factors likely to impact on the market
Interest rate cuts, greater access to credit, and continued high immigration levels are expected to keep demand strong through 2025. At the same time, housing supply challenges across the country have been well documented, and high demand with limited supply naturally drives up property values – a promising outlook for investors.
Each state government is now acutely aware of the housing supply crisis, but any measures they implement will take time to have an impact. While policy changes should benefit communities, they will also open up new opportunities for investors.
In short, with major shifts expected in Australia’s property, financial, and political landscapes, the future looks bright and property investment remains a compelling way for Australians to grow their wealth. For more in-depth discussions on these trends, visit my personal website, stephenvick.com.au, where I explore these topics in detail across a series of accessible blogs.
Overcoming Challenges
Successful property investing does not happen straight away. It takes time to learn about financial concepts and the market, and requires resilience to bounce back from the inevitable setbacks — of which I have had more than my fair share of.
As I outline on my personal website, my journey as a property investor has not been a conventional one, but it has nevertheless been invaluable.
You can read more about my journey at my personal website Stephen Vick.
My experience as a professional athlete has been invaluable in my investing career. In sports, moments of victory are exhilarating, but fleeting compared to the countless challenges and setbacks endured along the way. Success demands accepting setbacks, learning from every mistake, and keeping focused on your goals.
The enduring challenges have taught me that if you want to succeed, it’s ultimately up to you. This means taking advice but always questioning exactly how it relates to you. For me, being a competent full-contact kickboxer required putting together a complex puzzle— analysing, strategising, refining skills, and understanding my strengths and weaknesses. Property investment is no different. Like kickboxing, investing is layered with complexities that only reveal themselves with experience. It’s about navigating these complexities, crafting a strategy that aligns with your personal goals, and understanding how each piece of the puzzle fits into your larger picture.
This is what I love about working with clients. I take my knowledge of property and finance and tailor it to each individual’s unique situation, helping them understand how all the pieces fit together. Over the years, I’ve had the privilege of guiding hundreds, if not thousands, of people through the nuances of finance and property investment, and I still feel a thrill with every success story. Helping clients see the big picture and empowering them to make confident decisions is what keeps me passionate about what I do.
To read more about our services, or to make an appointment to discuss your property investment goals, check out our website National Property Advisory.
