What’s Actually Happening in the Market Right Now?

You’ll get different answers depending on who you ask, but here’s what we’re seeing on the ground.

In the past few years, most investor interest was heading toward Perth, Adelaide, Brisbane and some regional markets. But lately, Melbourne’s back on the radar. Investors seem to be positioning themselves now, knowing full well they might not see big gains in the next 3 months – but they don’t want to miss the early run when it does take off.

The vibe I’m getting is: “Let’s get in before it starts moving.”

What is Rentvesting? And Why It’s Getting More Popular

Rentvesting is pretty straightforward: you rent where you want to live, and you invest where it actually makes sense to buy.

Take Melbourne, for example. If you want to live inner-city, buying might set you back $1.2 million for a basic house. But renting in the same area could cost you $650 a week. Instead of buying where you live, you can rent there and invest somewhere with stronger growth potential and better rental yields.

That way, your investment property could help you build equity faster – equity you can eventually use to buy your future home.

It’s not just a strategy for young professionals either. Families and upgraders are taking this hybrid approach too – particularly in cities where prices have pushed beyond borrowing limits.

Timing the Market vs. Time in the Market

There’s no single “Australian property market”. Every city – even every suburb – moves differently.

That’s where the property clock comes in. If you haven’t heard of it, think of 12 o’clock as the peak, 6 o’clock as the bottom. Right now, Perth’s likely close to 12 – it’s had a strong 4-year run. Meanwhile, parts of regional WA are more like 9 o’clock, still moving up. Melbourne? It’s been stuck between 3 and 6 for a while, which could mean it’s getting close to its next upswing.

That’s why we say: “Now is always a good time to buy – it just depends where.”

If you base your decision on where your mate bought three years ago, you’re already late. The trick is identifying what market is set to grow next, not what’s already had its run.

What Makes a Good Investment Property?

Here’s the simplest way to break it down:

• Location first — population growth, infrastructure spending, multiple industries (not just one), and strong job opportunities.
• Good yield — cash flow that supports your investment, especially if you plan to build a portfolio.

As Wayne put it: “Capital growth is the name of the game. But cash flow keeps you in the game.”

Chasing pure growth suburbs can make finance tough if rent doesn’t cover costs. On the other hand, strong yield with moderate growth keeps you bankable and helps you keep building equity.

Houses vs Apartments: Why It Matters

Apartments may offer higher yields upfront, but they rarely deliver strong long-term growth.

Why? Because developers flood the market with more stock whenever prices rise — killing your capital growth. Plus, unlike land that appreciates, the building itself depreciates.

Wayne summed it up best: “Apartments have been my worst investments.”

Instead, focus on well-located, established houses with some land content. Low-maintenance, not brand new — so you still get depreciation benefits without the hidden costs and markup of house-and-land packages.

Cash Needed to Get Started

Every situation is different, but here’s a rough guide for first-time investors:

• $600,000 purchase price
• 20% deposit = $120,000
• Costs (stamp duty, legals, etc) ≈ $40,000
• Total: $160,000

That’s a lot to save. But going with a 90% loan-to-value ratio (LVR) isn’t uncommon. It lowers your upfront cash requirement but may come with lenders mortgage insurance (LMI).

Still, once the property grows in value, your LVR drops, opening the door to refinance or buy again using equity — without saving another big deposit.

Final Thoughts

Investing in property isn’t just about making a quick gain. It’s about setting yourself up long-term — and your first investment plays a big part in what you can do next.

Keep it simple:

• Rent where you want to live
• Invest where the numbers stack up
• Don’t chase what’s already happened – look at where the market is going
• Aim for solid growth and decent yield

And whatever you do – don’t just follow your mate’s tip from two years ago. The best decision then isn’t necessarily the best decision now.

Thinking About Rentvesting or Buying Your First Investment Property?

If you want help working out where to buy – and how to set yourself up for the long game – feel free to get in touch. I’m always happy to help you navigate your property journey.