Eight tips for starting an investment portfolio in 2025

If you're thinking of making 2025 the year you begin a property portfolio, your timing couldn't be better.

Planning a portfolio takes time, requiring market research and due diligence regarding your financial arrangements and the tax implications.

The Reserve Bank of Australia cut interest rates last week, which may impact buyer activity and property values in the coming months.

However, as an investor, you should be aware that industry researcher CoreLogic reports the market is busiest in its lower quartile. In other words, there are buyers looking for cheaper, entry-level properties.

Around 40% of the market is made up of either investors or first homebuyers, so you'll likely find the more affordable end of the market competitive.

Below, we've listed some tips for investors in 2025.

Build a Team: Having excellent financial and legal advice, and a real estate agent who's prepared to recommend suitable investment properties, is gold. With the support of trusted professionals, you will feel more secure in your decisionmaking.

Money Positivity: Take money seriously. Resist spending frivolously or indulgently, and channel your wealth into building more wealth. If you can build this as a habit, then you're surely on the path to success.

Simplify Your Finances: Keep the number of bank accounts to a minimum, and when it comes to paying for maintenance or improvements, use a single, dedicated account. Avoid spreading expenses over multiple credit cards or accounts.

Tax Advantages: There are many tax advantages to owning an investment property. Your accountant or financial adviser will help you maximise the incentives on offer. However, spend time understanding the basics, too.

What's Your Why: This has become a bit of a cliche in the last couple of years. But like all cliches, it holds a basic truth. You need to understand why you've decided to become a property investor, and build a sustainable strategy around your “why”.

Set Strategy: Work with your financial adviser or accountant. Are you going to be an investor who regularly turns over property, or someone who holds for the long-term. Understanding the various approaches available to you is critical to your success.

Appreciate the Difference: The key element to capital gain in real estate is land value. Land is an appreciating asset, while property is a depreciating asset.

Apartment Buying: Land value is less of a concern when buying a flat. So, drill down on the local area's appeal to would-be tenants. Access to employment, schools, public transport and amenities such as cafes and restaurants will attract good quality tenants. Also, do your due diligence on the strata fee, the strata committee and its works fund.

If you need help building your portfolio, contact our Head of Property Management, Rob Woolmer on 0473 205 961.

Paulette Contessi 

Director / Licensee

CONTESSI PROPERTIES