Deciding on the best property investment strategies for you can be daunting, especially if you’re a first-time property investor.
But give yourself credit!
You’ve already accomplished a big part of the daunting task – making the actual decision to invest in the property market.
If you can take one bold step towards a flourishing investment future, the next few steps shouldn’t be much more challenging.
To ease any pressure that you may be feeling, we have compiled a list of some of Australia’s most popular property investment strategies.
While there is no ‘one size fits all’ property investment strategy, this list aims to provide some direction when picking the best investment path for you.
1. Purchasing Your Own Home
One of Australia’s most popular property investment strategies involves buying a home where you can principally reside.
Whilst you don’t immediately generate cash flow from living in the property you buy; the two most significant financial advantages of this property investment strategy are that:
- Your cost base is likely to rise considerably in value, especially if you do any renovations and hold onto the property for an extended period.
- If and when you decide to sell the property, you will be exempt from paying capital gains tax.
Generally, this is how most Australians first get their foot in the property investing door.
2. Buy And Hold Strategy
Another popular investment strategy is the buy-and-hold property technique, which involves purchasing a property with the goal of holding onto it long enough to generate capital growth.
Deemed as one of the most straightforward property investment strategies, all you need to do is purchase the property and let it appreciate over time.
This strategy becomes particularly attractive in 2025 as property values are projected to rise steadily.
The only downside of going this route with your investment property is that it’s likely to take up to 7 – 10 years before you realise any capital growth.
However, while you are waiting to realise capital growth, you could use the property to generate a rental income.
The rental income can cover the mortgage costs and comes with one significant benefit: investment property tax deductions.
Knowing about your investment property tax deductions could be the difference between hoping to earn enough money from your investment and having a positive cash flow.
You can claim:
- interest on the loan you used to purchase the property; as well as
- rental expenses such as advertising costs, utilities and insurance
You may be interested in reading our Ultimate Guide to Investment Property Tax Deductions
3. The Gearing Investment Property Strategies
Gearing simply means that you have borrowed money to buy your investment property. Your property investment portfolio can either be positively geared, neutrally geared or negatively geared.
Neutrally geared, as the name suggests, means that you break even. Negative gearing and positive gearing are slightly more complex;
Understanding Negative Gearing
Negative gearing occurs when you borrow money to invest in property, and the income you make through rent, for example, is less than your expenses.
In other words, you’re running at a loss.
Running at a loss is not ideal, but in terms of Australian tax law, it’s not actually bad.
The Australian Tax Office (ATO) allows property investors to deduct any losses they make on their investment property from their taxable income.
Investors who purchase properties for long-term capital growth don’t usually expect to make their money on the rent.
So, they will generally use the negative gearing strategy in conjunction with the ‘buy and hold’ property investment strategy.
While the investors wait to cash out on the property’s long-term capital growth, the rent can contribute to any expenses incurred.
Quick Look at Positive Gearing
Property gearing refers to the relationship between your rental income and property expenses, including mortgage payments. When your rental income exceeds all property-related costs, your property is considered positively geared. This strategy can provide steady cash flow and is particularly attractive to investors seeking regular income from their properties.
Positive gearing offers several advantages:
- Immediate cash flow benefits as your property generates surplus income
- Reduced reliance on your personal income to cover property expenses
- Greater financial stability during market fluctuations
- Potential to reinvest surplus funds into additional properties
- Lower risk profile compared to negative gearing strategies
4. The Renovate and Hold Investment Property Strategy
The objective of renovating and holding investment properties is maximising the earning potential and increasing property values.
In 2025, sustainable renovations will become increasingly valuable, with energy-efficient homes commanding 5-10% higher values.
Example
When Sarah purchased her three-bedroom Brisbane house in 2024 for $750,000, she had a vision that went beyond traditional property investment. She saw an opportunity to create a sustainable, high-performance property that would benefit both the environment and her bottom line.
With careful planning, Sarah invested $120,000 in strategic sustainable upgrades. She installed solar panels to harness Queensland’s abundant sunshine and added energy-efficient windows and insulation to maintain comfortable temperatures year-round. The property was further enhanced with smart home automation systems, water-saving fixtures, and LED lighting.
The results exceeded her expectations. The property’s value jumped to $935,000, with real estate agents noting that the sustainable features commanded an 8% premium in the market. The energy-efficient improvements dramatically reduced monthly utility bills from $380 to just $95, making the property highly attractive to cost-conscious tenants.
Sarah’s investment in sustainability paid off in rental returns too. She was able to increase the weekly rent from $620 to $750, while enjoying lower vacancy rates due to high demand from tenants seeking eco-friendly homes. Her story demonstrates how strategic sustainable renovations can create both environmental benefits and strong investment returns.
The sustainable upgrades not only improved the property’s value but also attracted quality, long-term tenants who prioritised environmental features.
Sarah’s property now commands premium rental rates while benefiting from government incentives for eco-friendly improvements.
This strategy proved particularly effective should energy prices continue to fluctuate throughout 2025, making her property more attractive to both tenants and potential buyers.
5. The Flipping Property Investment Strategy
Not all property investors are interested in waiting years to see a profit from their investment. So, instead, they search for old, broken-down properties to renovate to increase the sale value.
This process is known as “flipping”.
The benefit of this property investment strategy is that you can profit relatively quickly because most investors try to complete the process within 12 months.
However, it is one of the property investment strategies that demands the most skill.
A lot of planning has to go into ensuring that you accurately predict the potential of the renovation. You also risk spending more money than you budgeted if you don’t tightly monitor your costs.
This property investment strategy is generally best suited to an experienced investor who is looking to expand their portfolio quickly.
6. The Subdivision Property Investment Strategy
Subdividing involves purchasing one piece of land and legally splitting it to create two individual parts of the land.
Subdivision can provide you with various options. You can then either choose to:
- Sell off each subdivided part of the land
- You could keep one piece of the land and sell the other
- You could keep both and use one plot to generate income and the other as your primary residence.
Not only will you have various options when it comes to deciding how to utilise the plots, but the value of the land will also generally increase once it has been subdivided.
However, compared to other property investment strategies, subdivision generally takes a longer time to complete.
In the time that it takes to complete the subdivision, there may be a change in the market, making it challenging to sell one or both individual parts of the land.
Similar to the renovating property investment strategies, there is potential to maximise the return on your investment, but there are also quite a few risks.
Therefore, you must do all the necessary research and calculations beforehand to ensure it’s worth the potential risks.
What’s On the Horizon For 2025?
Gone are the days when property investment was just about location, location, location. As we move through 2025, technology and sustainability are reshaping how we think about property investment. Let me walk you through some exciting developments that are changing the game.
Market Intelligence
AI-powered platforms now analyse millions of data points to predict market movements and identify investment opportunities with remarkable precision.
These tools examine historical data alongside current market conditions to deliver strategic insights that minimise risks and maximise returns.
Growth Corridors
The landscape of property investment in 2025 is particularly exciting in several key areas:
Western Sydney’s Transformation
The Western Sydney Airport development is driving unprecedented growth, with the area set to become a major logistics and business hub. The region is experiencing increased demand for industrial spaces and logistics hubs, particularly near the M7 motorway.
Brisbane’s Olympic Boom
Brisbane’s property market is showing remarkable strength, with forecasted dwelling price increases of 9% to14% in 2025. The upcoming 2032 Olympics is driving significant infrastructure development and population growth.
Sustainability Integration
The green building revolution is no longer just about environmental consciousness – it’s about smart investment. Modern sustainable buildings are showing impressive returns:
Energy Efficiency
Green buildings typically reduce energy consumption by 30-50% compared to traditional buildings.
This translates to significant operational cost savings and higher property values.
Water Conservation
Advanced water-saving systems can reduce consumption by up to 40% through:
- Smart irrigation systems
- Greywater recycling
- Rainwater harvesting
Risk Management Strategies
In 2025’s dynamic market, sophisticated risk management is crucial. Successful investors are doing the following:
- Diversifying across different property types and locations to minimise exposure to market fluctuations
- Conducting regular portfolio reviews to maintain optimal risk levels
- Using conservative leverage ratios while maintaining adequate cash reserves
These strategies have proven particularly effective as markets continue to evolve and new opportunities emerge across different sectors and locations.
Take Action Today
As a team of property investors ourselves, we at Duo Tax understand that every dollar counts. We’ve got the expertise to help you maximise the return on your investment, whether you’re just starting out or expanding your portfolio.
Our quantity surveyors can help you navigate the complexities of property investment, from tax depreciation to sustainable renovations. We stay ahead of market trends and technological advances to ensure you’re making informed investment decisions.
To see how our quantity surveyors can help you make the most of your property investment journey, get in touch today!
Key Takeaways
The property investment landscape of 2025 offers diverse opportunities for both new and experienced investors. Here’s what you need to remember:
- There is no “one size fits all” property investment strategy – your approach should align with your financial goals and risk tolerance
- Market conditions in 2025 favour strategic property investment, with predicted steady growth of 4-6% across capital cities
- Technology integration, from AI-powered market analysis to smart home features, is becoming essential for successful property investment
- Sustainable properties are commanding 5-10% higher values, making green renovations a smart investment choice
- Risk management through diversification and professional guidance remains crucial for long-term success
- Understanding property cycles and emerging growth corridors can significantly impact your investment returns
- Building a strong professional network of advisors is key to navigating the complex property investment landscape
Ready to get started?
Talk to one of our friendly property experts to get a free quote or more Information.
Tuan is an award winning Quantity Surveyor and leads Duo Tax Quantity Surveyors – Australia’s fastest growing provider of Tax Depreciation.
