Pick the right city and suburbs

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Most investors rush into property with tactics, not strategy, and pay for it in mistakes that are costly to buy, hold, and unwind. This guide lays out a clear, repeatable framework so you can make property decisions that compound for decades. Start by defining a single objective: long-term growth drives wealth; yield only supports holding costs. Next, build the finance structure first, smart loan splits, offsets, IO vs P&I, no cross-collateralisation, so your cash flow and future capacity are protected. Then buy only investment-grade assets: scarce, land-heavy homes in established, supply-constrained suburbs with deep owner-occupier demand and long growth histories.

Model cash flow conservatively (30% expense allowance, 6.5% rates +1% stress) to avoid both over- and under-investing. Choose the city with the best 10-year prospects, then narrow to the top suburbs. Don’t trade quality for a cheaper price point. Manage risk on purpose: maintain buffers, insure properly, avoid excess leverage, preserve capacity, and diversify gradually. Review every 3–5 years for equity, borrowing power, cash-flow optimisations (including value-add), and asset quality, then scale only when foundations are strong.

Follow this process, and the property becomes a disciplined wealth engine. Ignore it, and you’ll battle avoidable costs, fragile cash flow, and disappointing results.

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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.