Thinking about property investment in Australia?  With the Reserve Bank of Australia (RBA) holding the cash rate steady at 3.60%, investors are assessing where the best opportunities lie. A recent RealEstate.com.au survey shows Melbourne back on top, with 41% of investors naming it the best place to buy, despite tax changes and stricter rental laws that have seen some landlords sell up. For savvy buyers, this could actually be the moment to enter — when others are stepping out.   Realestate.com.au

Beyond Melbourne, strong migration continues to boost Brisbane, affordability still attracts buyers in Perth, and Sydney remains resilient long term. Across Australia, investors are focusing on fundamentals: capital growth, rental yield, location, property type, finance structure and tax strategy.

In this guide, we’ll cover 8 things to look for in an investment property, including how to take advantage of still-available negative gearing benefits, when an SMSF purchase through Super may make sense, and why the right mortgage broker and accountant are essential partners on your investment journey.

1. Capital Growth Potential

Capital growth is the increase in value of your property over time, and for many, it’s the main reason to invest.

• Review median price movements for the suburb, not just in the last year, but across 5–10 years.

• Look for upcoming infrastructure like transport links, hospitals, or shopping centres, which can drive demand.

• Consider the economic and employment outlook for the area — job hubs often underpin sustained growth.

• Compare supply vs demand: suburbs with limited land release usually outperform high-supply areas.

Investor Spotlight: Melbourne

While Melbourne is again topping investor surveys, it’s also a market where many landlords have recently sold due to higher land tax charges, stricter rental legislation and a general shift in tenant protections.

For some, this makes Melbourne appear less attractive. But for others, it signals opportunity:

• Less competition means better chances to secure a property at the right price.

• Rental demand remains strong, underpinned by population growth and housing undersupply.

• Exiting landlords create gaps in the market, while tenants still need homes.

In short, while some see Melbourne’s changes as a reason to leave, it could actually be the right time to enter — especially if you’re thinking long term.

2. Rental Demand & Yield

An investment needs tenants. Strong rental demand helps maintain consistent income, while yield ensures costs don’t erode returns.

• Vacancy rates: Under 2% usually indicates strong demand.

• Rental growth: Has rent been increasing year on year?

• Tenant demographic: Families, students, or professionals? Each group values different property features.

• Balance gross and net yield: Gross is a quick guide, net gives a more realistic picture after outgoings (rates, strata, insurance, management fees).

• Check comparables: Look at similar homes to see how quickly they lease and at what price.

3. Location, Location, Location

Where you buy is as important as what you buy. Good locations attract quality tenants and deliver long-term growth.

• Proximity to schools, universities, transport, shopping, and health services boosts tenant appeal.

• Lifestyle factors like parks, cafes, gyms, and walkability are becoming increasingly important.

• Look for gentrifying suburbs — areas where new infrastructure, cafes, and younger demographics are moving in.

• Don’t ignore regional hubs — some offer strong yields and future growth potential if infrastructure investment is planned.

4. Type of Property

The right property type depends on your budget, goals, and the local market.

• Houses: Often higher purchase prices but appeal to families and can achieve better land value growth.

• Apartments/units: Lower entry cost and generally lower maintenance, but strata fees can impact yield.

• Townhouses/duplexes: Middle ground with multi-demographic appeal.

• Match the type to who rents there — e.g. apartments near universities vs houses in family suburbs.

• Think ahead — what will resale demand look like in 10+ years?

5. Age & Condition

Both new and established properties have pros and cons.

• New builds: Often come with stronger depreciation benefits (great for tax offsets) and lower immediate maintenance, but usually at a higher upfront cost and may take longer to show significant capital growth.

• Older homes: May need more upkeep, but they often sit on larger land parcels, have renovation upside, and are in established suburbs with proven growth.

• Always get a building and pest inspection before you buy.

• Consider whether the property suits your long-term holding strategy — a property that bleeds maintenance costs could erode returns.

6. Features Tenants Value

What tenants value can directly influence your rental return.

• Secure car parking or garages — a must in most metro areas.

• Layouts that suit modern living — open-plan kitchens, second bathrooms, or study nooks/home offices.

• Outdoor space — courtyards, balconies, or nearby green areas add tenant appeal.

• Natural light, storage, and energy efficiency are increasingly important to today’s tenants.

• The Best renters are offered the properties, so be competitive as a better renter is way more valuable than the top rental amount.

7. Finance Structure & Ownership Pathways

How you buy matters as much as what you buy.

• In your own name: This allows you to access negative gearing benefits (offsetting investment property losses against taxable income). While there’s often political talk about removing negative gearing, no changes have been made — and if reforms ever occur, they usually apply only to new purchases, not existing properties.

• Through your Super (SMSF): A Self-Managed Super Fund can be used to buy property, opening doors for those who may not have the income affordability outside super but have accumulated savings inside their fund.

A mortgage broker can guide you through lender policies, while an accountant can help with structuring and tax outcomes.

8. Professional Accounting & Tax Advice

Getting the numbers right is essential. A good accountant can:

• Explain tax deductions and depreciation

• Advise on ownership structures (individual, trust, SMSF)

• Keep you compliant while maximising benefits

Final Thoughts

The RBA’s pause provides stability, Melbourne is once again on investors’ radar (despite the recent challenges), and other states are showing strong fundamentals.

The key to success is not just buying a property, but buying the right property, in the right way, with the right support.

At WhiteStar Finance & Conveyancing, we help investors:

• Understand their borrowing power

• Structure loans for long-term benefits

• Connect with accountants for tax and SMSF planning

• Stay ahead of changing lender policies

Whether you invest in your own name or through your Super, the right preparation today can set you up for financial freedom tomorrow.