It’s human nature to make decisions based on how something makes us feel — but property investing is not the time for sentimentality. A Commonwealth Bank study found that nearly half of buyers admitted to paying more for a property simply because they liked it. This emotional bias can lead to overpaying, purchasing in the wrong area, or ignoring better investment alternatives.

Location is everything. But too many investors buy based on familiarity or marketing rather than fundamentals. A well-located property should have consistent demand from quality tenants and long-term capital growth potential.

Before purchasing a property, ask yourself, is the area supported by strong infrastructure and job growth? Are there good schools and transport links? Is it part of a broader urban renewal strategy?

A great property in the wrong suburb will always underperform a good property in the right suburb. Prioritise areas with rising demand, upcoming development, and low vacancy rates. Tools like suburb performance reports and location risk analytics can offer data-driven insights.

Too many investors rely on gut feel or hearsay when making big decisions. Others get caught in analysis paralysis, overwhelmed by data but lacking the framework to interpret it properly. Either approach is dangerous.

Good research means understanding what you’re buying down to the street, dwelling type, historical performance, and demographic trends. It also means stress-testing the purchase. How will it perform if rates rise? What happens if the property sits vacant for a month?

Owning an investment property involves far more than just mortgage repayments. Ongoing costs such as strata fees, maintenance, insurance, property management, council rates and potential vacancy periods all chip away at your cash flow.

Failing to account for these expenses can result in financial pressure and force you to sell at the wrong time. It can also delay your ability to reinvest or reduce debt. Model out best-case and worst-case scenarios before buying. Always have a contingency buffer for unexpected expenses.