How to select an investment property

Here’s a practical checklist you can use when evaluating an investment property:

✅ 1. Location & Demand

• Is the property close to public transport, schools, shops, and employment hubs?

• What is the vacancy rate in the suburb?

• Are there future developments (infrastructure, zoning changes) that may boost or hurt values?

✅ 2. Cash Flow & Yield

• What is the expected weekly rent?

• After mortgage, rates, insurance, and property management fees, is it positive, neutral, or negative cash flow?

• What’s the gross yield (annual rent ÷ property price)?

✅ 3. Capital Growth Potential

• Have property values in the area shown consistent growth over the last 5–10 years?

• Is population in the area growing?

• Are there signs of gentrification (new cafes, amenities, upgrades)?

✅ 4. Property Type & Tenant Appeal

• Who are the likely tenants (families, students, young professionals)?

• Does the property meet their needs (number of bedrooms, parking, modern amenities)?

• Is the property low-maintenance, or will it require frequent repairs?

✅ 5. Financing & Risk Management

• Do you have pre-approval and know your borrowing limit?

• Have you factored in interest rate rises and unexpected costs?

• Do you have a buffer (savings, revolving credit) for vacancies or emergencies?