Why Strategy Comes Before Property

Too often, people treat property investing like house-hunting: finding something they’d personally love to live in. But successful investing isn’t about pride of ownership; it’s about strategy.

Every purchase will either enable or limit what you can do next. The property you choose, and how you structure your finance and tax planning around it, determines whether you can grow a portfolio or get stuck – there is a reason that over 70% of property investors only hold one investment property.

And here’s the truth: all risk comes from a lack of knowledge. Regardless of where you’re at in your property journey, you are your biggest risk. It’s why the ‘team’ is essential to a successful strategy.

What the Data Says

With a focus on ‘what you would live in yourself’, we find many investors focus on more expensive and larger properties. While these homes can perform well, what we find is that the more expensive the property, the lower the long-term performance (despite the shining, headline-making moments). Over the long term, it’s the smaller and more affordable homes that outperform. Why? Simply, it is where the majority of the purchaser and rental demand lies. These types of homes consistently have the most competition, the most buyers, and the most renters, regardless of the economic climate.

Over 60% of Australian households are made up of just one or two people. Yet the vast majority of our housing stock, and of new approvals, are homes that suit much larger households. This is why smaller homes, villas, and dual-living options are in such high demand, and why they represent such strong opportunities for investors.

So, while you might dream of a waterfront apartment, it’s essential to weigh that against what the data says. Can you have both? Possibly. But the difference is strategy. For example, a dual-key beachside apartment doesn’t just offer luxury, it opens multiple income pathways: live in one side, rent the other, or tap into the short-stay market, while at the same time providing a housing type that is in growing need.

How Property Fits Strategy

When people ask us, “What properties have you got for sale?” the answer is simple: it doesn’t work like that. We don’t hold ‘listings’ or ‘sell stock’ like real estate agents. We source a pool of properties that fit a range of strategies and capacities and then work with our clients to ensure they are matched to their personal plan to enable portfolio growth, thereby increasing their opportunity to enhance their net wealth and financial security.

In our annual market analysis report, the summary of research provides unequivocal evidence that the most needed and therefore highest potential growth in price and income, are smaller homes, especially units, that are 1 or 2 bedrooms. This can be seen in homes of different built form types such as dual key living, or smaller, terrace style housing.

Here are a few of the types of opportunities we’re seeing right now:

• $630K hinterland low-set villa – Two bedrooms, two ensuite bathrooms, strong rental demand, walkable to town centre and mass transport.
• $650K beachside apartment – One-bedroom, single car garage, low-maintenance living, for those seeking affordability and beach/lifestyle access.
• $680K–$850K terrace homes – Compact homes in walkable infrastructure areas with immediate equity of $70K to $100K!
• $1.3M beachside dual-key apartment – Lifestyle plus flexibility, meeting multiple segments of market demand while protecting yield.

The key question isn’t which one you like; it’s which one aligns with your borrowing capacity, your financial structure, and your future plans. For instance, with $1M in borrowing capacity, you might think you could only buy one of the above properties, but the right strategy and finance structure may see your capacity increase allowing you to secure multiple, that deliver stronger yields and give you room to grow.

Why Strategy Matters

Your investment journey is about more than bricks and mortar. It’s about:

• Matching the right property type to market demand.
• Ensuring your purchase supports your next move.
• Structuring your finance, tax, and investment approach to maximise opportunities.

Without strategy, you’re buying in the dark. With strategy, you’re building a future.

And if you’re thinking, “I want to act, but I feel limited. I’m stuck.”  here’s the good news: everyone can do more than they think.

If you’ve found this interesting, there’s plenty more we can share.

Book a free strategy session where we’ll look at exactly what’s possible for you.

Or download the guides to explore more about how strategy can unlock your next step.