In property investment, long-term success often hinges on just a few key decisions.
Surprisingly, around 90% of investors consistently neglect two important areas, exposing themselves to unnecessary risks and missed opportunities.
From what I’ve seen, the two major things many property investors fail to do are:
- Build a well-thought-out investment strategy that can withstand market changes over time, and
- Regularly assess how their property portfolio is performing.
Without a clear understanding of their investment goals and without documenting a structured plan tailored to their stage in the property journey, many investors end up reacting to short-term market movements and unsettling media headlines. This lack of direction often leaves them feeling unsure about how to move forward.
Having a solid strategy in place provides more than just guidance—it builds confidence. It helps investors make decisions with clarity, even when the property market becomes unpredictable or challenging.
Equally important is the need to frequently review your portfolio. Many investors, once they acquire a few properties, simply leave them to run on autopilot. In doing so, they miss out on warning signs, growth opportunities, or changes in performance that require action.
By actively tracking how their investments are performing, property owners can spot patterns, make better choices, and take advantage of opportunities they might otherwise overlook.
Regular reviews also make it easier to fine-tune your strategy, ensuring your portfolio continues to reflect your financial goals and current market conditions.
Looking at it this way it should come as no surprise that most investors never get past owning one or two properties.
If you’re unclear about why you’re building a property portfolio or how it will eventually help you leave the 9-to-5 behind, it becomes incredibly difficult to know which types of properties are right for you.
Without a clear direction, how can you tell if you’re making progress or hitting your financial goals?
The reality is, when you don’t have a clear destination in mind, any path might seem like the right one—but it could just as easily lead you off course.
This couldn’t be more relevant than in the world of property investment.
So what are your goals?
How much income do you want your property portfolio to generate?
How many properties will you need to reach that goal?
And have you decided on a clear investment approach—are you aiming for long-term capital growth, consistent cash flow, or simply hoping things work out?
At present, there are more than 145,000 homes listed for sale in Australia. While that might sound like a lot, it’s actually below the long-term average. And the truth is, not every one of those is a worthwhile investment.
In fact, the majority aren’t.
Many top-tier properties aren’t even hitting the market right now. Sellers with high-quality homes are holding back, waiting for signs of improvement in the housing market before deciding to sell.
To make sure I only purchase properties that perform above the market average, I follow a six-part strategic approach.
Here’s what I look for:
- Owner-occupier appeal – While I may not plan to sell the property, homes that attract owner-occupiers tend to benefit from stronger demand, which helps drive local property values upward. This will become even more important as investor activity potentially decreases in the future.
- Buying below true value – I avoid new builds and off-plan developments, as these often come with inflated price tags. Instead, I focus on properties priced below their intrinsic worth.
- Strong land-to-asset ratio – This doesn’t always mean a huge plot of land, but rather ensuring that the land component contributes significantly to the property’s overall value.
- Location with proven growth – I target areas that have shown consistent capital growth over time and are likely to continue outperforming due to solid demographics and demand drivers.
- A unique element – I look for something special or distinctive about the property—whether it’s a rare feature, architectural design, or scarcity in the local market.
- Opportunity to add value – I prefer properties where I can boost value through renovations, upgrades, or development potential, instead of relying solely on market appreciation during slower growth periods.
By sticking to this Six-Strand Strategic Approach, I reduce the risk and increase the potential for stronger returns.
Each strand represents a different way to profit from property, and when combined, they create a solid foundation. If one area underperforms, the others can help balance out the overall result.
Looking at investment this way reveals that successful property buying isn’t just about picking something off a website. It involves research, effort, and—most importantly—perspective.
While you can gather knowledge from books, podcasts, and online resources, true perspective comes from years of experience in the market.
Most investors do a bit of reading, search online, and jump into one of the first deals they find. In contrast, strategic investors rely on tried-and-tested systems that work across different market conditions.
And that’s not where it ends.
I also recommend…
Regularly review your property strategy
Many investors take a “buy and forget” approach, holding onto properties for the long term without regularly reviewing how well those assets are actually performing.
When I speak with investors and ask how their portfolio is doing, most struggle to give a clear answer. It often seems like they’re hoping for the best without actually checking whether their investment is working in their favour.
But putting money into property without assessing its performance every year or two doesn’t make much sense. Without regular check-ins, it’s easy to hold onto underperforming assets for far too long.
Some investors simply avoid the difficult conversations, reassuring themselves with phrases like, “it’ll bounce back eventually” or “I’ll hang on until I break even.” But delaying decisions like this can do more harm than good.
When I review my own property portfolio, I ask myself a few key questions to assess each property’s value and potential:
- How has this property performed over the past few years?
- If I knew then what I know now, would I buy this property again?
- Do I believe this property will outperform the market average over the next 10 years?
- Is there something I could do—such as renovations or improvements—that might boost its return?
If a property hasn’t delivered over a three or four-year period, chances are it’s not a strong investment and could be holding you back.
These questions help me focus on keeping only the best performers in my portfolio—ensuring my capital is working efficiently and not being wasted on properties that drag down my overall returns.
You might wonder whether now is the right time to sell, especially if the market feels flat or uncertain. But if your financial situation only allows you to hold a limited number of properties—say, five—you should aim to own the five strongest, most profitable ones you can.
If one property is falling short, it might be time to make some tough calls. This could mean renovating, switching property managers, or in some cases, selling and reinvesting in something with better prospects.
Yes, you might be selling in a slow market and not getting the price you’d like. But waiting for the market to “recover” can backfire—the gap between your poor-performing property and better opportunities could only grow, making it more expensive to secure something better down the line.
Selling a weak investment sooner rather than later gives you a chance to reposition yourself. Even if it means taking a small loss, paying capital gains tax, or covering stamp duty on a new purchase, these may be worthwhile costs if it sets you up for stronger returns in the long run.
Sometimes, taking a couple of steps back is what’s needed to leap forward. Strategic investors treat their portfolios like a business. And like any business owner, they know it’s not just about how much you earn—but how well your money performs, and how much of it you keep.
Treat your properties like your employees
You’ve likely heard the advice that property investment should be treated as a business. And in that context, your properties function as your employees.
Think about it—if your staff turned up late, spent the day scrolling through social media, took extended lunch breaks, and weren’t interested in helping your clients, what would you do?
You’d most likely carry out a performance review—and if things didn’t improve, you’d replace them. In some cases, you might even offer a redundancy package to move them on and bring in team members who are more productive.
The same principle applies to your investment properties. They need to be performing well over the long term, contributing to your financial goals—not just sitting idle.
If your properties aren’t delivering solid, wealth-building returns, you’ll struggle to reach true financial independence.
I often hear investors say, “My property’s not growing in value, but it’s not costing me anything either.” While that may seem harmless, they’re overlooking the real cost—missed opportunities. Just imagine how much equity they could’ve gained if that capital were tied up in a better-performing location—possibly £40,000 to £80,000 or more.
Sometimes, the only way forward is to take a financial hit—whether that’s selling at a small loss, paying agents’ fees, or covering capital gains tax. It may feel like going backwards, but in many cases, it’s necessary to make meaningful progress.
It’s not easy, though. Many investors are emotionally attached to their properties, which clouds their ability to assess performance objectively. That’s why I strongly recommend getting a professional to help review your portfolio annually.
There are many mistakes you could make as a property investor. But if you stick to a proven investment strategy and regularly evaluate your portfolio’s performance, you’ll avoid most of the traps others fall into.
Knowing what not to do is just as important as understanding what you should do.
If you’re looking for independent property investment guidance, working with a qualified, unbiased adviser—such as the team at Metropole—can make a real difference.
Having a plan is essential. While property continues to build wealth for many people, statistics show that 50% of Australians who purchase an investment property end up selling within five years.
And of those who remain in the game, the vast majority—about 92%—never get beyond their first or second property. Why? Because building wealth doesn’t just happen—it’s the result of deliberate, strategic planning.
Planning is about bringing future goals into today’s reality so you can take action now.
Let’s be clear: simply buying a property isn’t a strategy. It’s just one part of a much bigger process. The key is to begin with the end goal in mind—define what you want to achieve, and work backwards from there.
The property you end up purchasing should be the result of multiple carefully considered decisions, made in the right sequence.
That’s because property investing isn’t a one-off event—it’s an ongoing journey.
If you’re just starting out and want a proven plan, or if you’re an experienced investor feeling stuck, or even just looking for a fresh perspective on your current portfolio, it’s worth considering a Strategic Property Plan.
A personalised plan can help you:
- Set clear financial goals;
- Determine whether your targets are realistic based on your timeline;
- Track how well your investments are performing;
- Identify ways to accelerate your wealth creation;
- Spot potential risks you may not have considered.
With the right plan, you’re far more likely to build wealth safely and sustainably—faster than the average investor.
Your Strategic Property Plan should include:
- A strategy for building your asset base
- A plan to boost capital growth through improvements
- A method to increase rental returns
- Tactics for tax efficiency and asset protection
- A finance strategy that includes long-term debt management
- A blueprint for eventually living off your property income
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4 Simple Steps To Becoming Wealthy Through Property