Education · Resources
Investor Education: How to Make an Informed Property Decision
Investing in property should be a business decision, not an emotional one. Here is the process we take every investor through, and the resources to help you work through it.
The process
Seven Steps to an Informed Investment Decision
Most poor property decisions come from skipping steps: buying the property first and fitting a strategy around it later. We work the other way: Investor → Strategy → Location → Property.
01
Decide the outcome you want
Your financial goal: early retirement, setting up the children, a charity, a lifestyle choice, or a set amount of wealth to retire on.
02
Know your own reasons why
Your purpose keeps you on track when the market or the media get noisy.
03
Set your strategy
Budget, borrowing capacity, time frame, risk profile and the ownership structure: personal name, trust or SMSF.
04
Research the location
The fundamentals that underpin the investment: jobs, infrastructure, population, supply and rental demand.
05
Match the property to the outcome
The type, size and price that fits your goal and your strategy.
06
Understand the numbers
Price, land and build split, rent, gross yield, holding costs, depreciation and cash flow.
07
Make an informed, unemotional decision
Due diligence first, then a business decision you can stand behind.
Start here
Your Own Why
Before you look at a single property, write down what you want the investment to achieve and why it matters to you. It is the step most investors skip, and the one that keeps them on track.
Download our free Your Own Why workbook (PDF) and work through it before we speak.
Resources
Guides and Tools
Strategy before property
Why the strategy has to come before the property, and how we build one with you.
Read the guideInvestment grade property
What separates an investment-grade property from one that just looks good on paper.
Read the guideThe power of leverage
How borrowing lets your deposit control a larger asset, and the risks that come with it.
Read the guideHow much do I need to retire?
Work out how many pay days you have left and what you will need at retirement.
Retirement calculatorQueensland locations
Our location research and the LGA matrix of new stock, prices and rents across Queensland.
Explore locationsProperty types
House and land, dual key, townhouses, apartments and Co-Living compared on price and yield.
Compare property typesIndependent research
Check the Fundamentals for Yourself
We cross-check our location research against Hotspotting (Terry Ryder) and government, council and market data, and we encourage you to do the same. Look for population growth, jobs, infrastructure, limited competing supply and strong rental demand.
Then compare existing homes with new builds: read existing homes vs new builds and why time in the market beats timing it.
“Whenever you apply emotion to any decision, especially when it comes to investing, you’re guaranteeing yourself a lower return on investment, but only 100% of the time.”
Questions
Frequently Asked Questions
Where should a new property investor start?
With the outcome you want and your reasons why, then a strategy that fits your budget, borrowing capacity and time frame. Only then look at locations and properties.
How do I know if a property is investment grade?
It sits in a location with strong fundamentals, suits the tenants in that market, and the numbers stack up on price, rent, holding costs and growth potential. Emotion should play no part.
Is this financial advice?
No. Our education is general information only. Speak to a licensed financial adviser, accountant and broker about your circumstances.
Strategy Before Property
Talk to Us About Your Investment Strategy
Book a complimentary strategy call with Stephen Lazar. We’ll talk about your goals, your strategy and the property types and locations that could fit it.
One Network. Nationwide Reach.
Part Of The properT network Family
Investment Property Queensland is one specialist site within the properT network group — the same independent advisory approach, applied across states and property types.
