When buying an investment property, investor David Wayne recommends taking a good look at yourself, just as closely as the properties you are thinking of buying.

“You need to be able to empathise with your potential tenants when choosing a property, so you buy something that’s going to appeal to renters as much as it does yourself, and deliver the kind of returns you hope for,” he said.

Aside from that, EPS Property Search buyers agent Patrick Bright advises buyers to do their research by talking to property managers and buyers agents and checking ads to know what kind of property is in demand in different areas.

Capital growth is also a huge consideration. “Don’t just look at the likely rental returns,” said Clare Rutledge from LJ Hooker. “It’s important to look at something in terms of its capital growth, too.” Public transport and nearby tenant sources like universities and colleges are also essential, according to Wayne.

To make sure that you are increasing the yield on your property, buy something close to the area’s median price for that type of property. Also, if you are planning to invest in apartments, research both the developer and the builder to see what other projects they have done and if they had been successful. 

Apartments with a nice aspect and parking in a smaller block are popular. However, do not immediately choose an apartment with cheap strata levies, as that might be a sign that the building does not offer the kind of quality or facilities that tenants might be after.

Areas that are close to the CBD, like Surry Hills and Darlinghurst, have historically delivered strong results because they are always popular among renters of both houses and apartments.

Finally, Wayne warns that getting too attached to your investment property is a big no-no. “At the end of the day, it is an investment property, and you’re buying it mainly for the rental returns and the likely capital growth,” he said.