Property Investment
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If there is one Australian property investment market that has consistently outperformed expectations over the past three years, it is Brisbane and the broader South East Queensland corridor. With the 2032 Olympics now firmly on the horizon, a sustained interstate migration boom and some of the country's most compelling gross rental yields, Brisbane continues to be the market our strategists recommend most frequently to both new and experienced investors.

The Olympics Effect: Infrastructure Investment at Scale

The Brisbane 2032 Olympic Games represents the single largest infrastructure investment in Queensland's history. The State and Federal governments have committed over $42 billion in infrastructure spending — spanning new rail lines, stadium upgrades, road networks and urban renewal precincts across Brisbane, the Gold Coast and the Sunshine Coast.

For property investors, large-scale infrastructure investment is one of the most reliable drivers of medium to long-term capital growth. Areas along new transport corridors consistently outperform the broader market in the years both before and after major infrastructure delivery. We are already seeing this effect in suburbs such as Woolloongabba, Albion, Bowen Hills and Hamilton — all slated for significant Olympic-related development.

Interstate Migration: The Demand Driver That Doesn't Stop

South East Queensland received a net interstate migration gain of over 30,000 people per year for three consecutive years following the pandemic. While the rate has moderated slightly, Queensland continues to attract more interstate migrants than any other Australian state — drawn by lifestyle, affordability relative to Sydney and Melbourne, and a booming job market in construction, healthcare and technology.

This sustained population growth creates a structural floor under rental demand. Vacancy rates across Greater Brisbane remain historically low — sitting between 0.9% and 1.4% across most inner and middle ring suburbs. For investors focused on rental yield and occupancy, these fundamentals are highly favourable.

Best Brisbane Suburbs for Investment in 2025

Our research team currently identifies the following areas as offering the strongest combined case for property investment in the Brisbane market:

• Kedron and Wooloowin: Inner-north suburbs with strong capital growth, proximity to Cross River Rail infrastructure and gross yields averaging 5.5–6.2%.
• Zillmere and Aspley: Middle-ring northern corridors offering above-average yields of 5.8–6.4% and strong demand from both renters and owner-occupiers.
• Ipswich LGA: Consistently delivering gross yields of 6.0–7.2% with infrastructure-backed growth in Ripley Valley and Springfield Lakes.
• Logan Central precinct: High-yield opportunities with median house prices still accessible below $650,000 and yields often exceeding 6.5%.

Is Brisbane Right for Your Investment Strategy?

Brisbane is not the right market for every investor. Those seeking maximum short-term capital appreciation may find inner-city Melbourne or Sydney's premium suburbs more compelling — though at the cost of substantially lower yields. Brisbane's strength lies in its combination of above-average yield and above-average growth — a balance that suits the majority of investment strategies we architect for our clients.

If you are considering investment property in Brisbane or South East Queensland, our strategists currently have off-market opportunities across several of the suburbs identified above. Book a free strategy session to explore whether Brisbane aligns with your investment goals.

Buying your first investment property in Australia is one of the most significant financial decisions you will make. Done well, it is the foundation of a portfolio that can generate genuine passive income and lasting wealth. Done poorly, it can be a costly mistake that takes years to recover from. This guide covers everything you need to know — from assessing your borrowing capacity to choosing the right market and property type.

Step 1: Understand Your Financial Position

Before anything else, you need a clear picture of where you stand financially. This means understanding your gross income, existing debts, credit history and available equity or savings for a deposit. Most lenders require a minimum 10% deposit for investment property, though 20% allows you to avoid Lenders Mortgage Insurance (LMI) — a one-off premium that can add $8,000–$25,000 to your purchase cost.

Step 2: Define Your Investment Strategy

There is no universal "right" property investment strategy — the best approach depends entirely on your goals, timeline and financial situation. The two primary strategy directions are:

• Cashflow-focused investing: Targeting properties where rental income exceeds costs (positively geared). Typically means looking at regional areas, Queensland or Perth where yields are higher. Suitable for investors who want or need income from day one.
• Capital growth-focused investing: Targeting properties in high-demand areas near infrastructure, employment and amenity — accepting lower yields in exchange for stronger long-term price appreciation. Suitable for investors with strong income who can absorb short-term negative cashflow.

Most sophisticated investors ultimately seek a balance of both — properties that offer reasonable yields with strong structural growth drivers. This is the approach Zenvest most commonly recommends for first-time investors.

Step 3: Get Finance Pre-Approval

Before you begin searching for investment properties, speak to a mortgage broker. A good broker will assess your borrowing capacity across 30+ lenders — not just the one bank you already use — and can often identify options that significantly increase your purchasing power or reduce your interest rate.

Investment property loans typically carry a slightly higher interest rate than owner-occupier home loans — typically 0.2–0.5% higher. At time of writing, investment variable rates are broadly available between 6.0–7.0% depending on your LVR and lender. Interest-only periods (typically up to 5 years) are common on investment loans and can improve short-term cashflow.

Step 4: Choose the Right Market

Location is the single most important decision in property investment. A great property in the wrong market will underperform; a modest property in the right market will outperform. The key factors we analyse for every market are:

• Population growth and interstate/overseas migration trends
• Infrastructure investment pipeline (roads, rail, hospitals, universities)
• Rental vacancy rates (below 2% is considered tight — favourable for landlords)
• Affordability relative to income and historical medians
• Employment diversity and economic drivers

Step 5: Conduct Thorough Due Diligence

Never skip due diligence. Before committing to any investment property, you should obtain: an independent building and pest inspection; a rental appraisal from a local property manager; a depreciation schedule estimate from a quantity surveyor; and independent legal advice on the contract. These typically cost $1,500–$3,000 in total and can save you from costly mistakes.

The most fundamental question in property investment strategy is this: do you invest for cashflow, or do you invest for capital growth? The answer — and the strategy that flows from it — will determine where you buy, what you buy and how you finance it. Understanding this distinction is essential for any serious Australian property investor.

What Is Positive Cashflow Property?

A positively geared or positive cashflow property is one where the rental income received exceeds all costs associated with holding the property — including the mortgage, rates, insurance, property management fees and maintenance. The property, in other words, puts money in your pocket each month rather than costing you money.

Positive cashflow properties are typically found in regional areas, outer suburban growth corridors or markets like Brisbane, Perth and Adelaide where yields are higher relative to property values. A property worth $550,000 generating $650 per week in rent produces a gross yield of approximately 6.1% — which, after accounting for costs, may generate modest positive cashflow.

What Is Capital Growth Investing?

Capital growth investing prioritises long-term price appreciation over short-term cashflow. Capital growth investors typically accept lower rental yields — and therefore negatively-geared properties that cost money to hold — in exchange for properties located in high-demand inner-city or coastal areas where prices historically increase faster than the national average.

Sydney's inner suburbs, Melbourne's premium precincts and Brisbane's inner-city ring are examples of markets that have historically delivered strong capital growth but lower gross yields — typically in the 3.0–4.5% range for houses.

The Truth: Most Investors Need Both

The false dichotomy between cashflow and growth has led many investors astray. The reality is that the best investment strategies incorporate both considerations — targeting properties that offer reasonable yield to minimise holding costs while still being located in fundamentally sound growth corridors.

Which Strategy Is Right for You?

The right approach depends on your personal financial situation:

• Choose cashflow if: You are on a moderate income and cannot absorb ongoing holding costs; you want to accelerate your portfolio growth by reinvesting positive cashflow; or you are close to or in retirement and need income from your assets.
• Choose capital growth if: You have strong professional income and can comfortably service holding costs; you are investing over a 10–20 year horizon; or you already have positive cashflow from other sources and want to maximise long-term wealth.
• Choose a balanced strategy if: You want to build a sustainable portfolio over time without being exposed to large monthly losses — and you want both yield and growth to compound together.

Negative gearing is one of the most discussed — and most misunderstood — concepts in Australian property investment. Mention it at a dinner party and you'll get strong opinions on both sides. Cut through the noise and what you find is a legitimate and well-understood tax strategy that, when used correctly, can meaningfully accelerate wealth creation for the right type of investor.

What Is Negative Gearing?

A property is negatively geared when the costs of owning it exceed the income it generates. In practical terms: if your investment property costs you $3,200 per month in mortgage repayments, management fees, rates and insurance, but only generates $2,600 per month in rent, you have a negative cashflow of $600 per month — or $7,200 per year.

Under Australian tax law, this $7,200 annual loss can be used to offset your other income — reducing the amount of income tax you pay. This is the core mechanic of negative gearing as a tax strategy.

How the Tax Benefit Works

The tax benefit of negative gearing scales with your income tax rate. The higher your marginal tax rate, the more valuable the tax offset. Here is a simplified example:

• Annual rental income: $31,200 ($600/week)
• Annual interest expense: $32,500 (6.5% on $500,000 loan)
• Annual other costs (rates, insurance, management, maintenance): $7,500
• Net annual loss: $8,800
• Tax offset at 37% marginal rate: $3,256
• Real out-of-pocket cost after tax benefit: $5,544 per year ($106/week)

Depreciation: The Investor's Hidden Advantage

One of the most underutilised strategies for investment property owners is depreciation. The Australian Tax Office allows property investors to claim depreciation on the building structure (Division 43) and on plant and equipment items within the property (Division 40) — such as appliances, carpets and blinds.

For a newly constructed investment property worth $600,000, a quantity surveyor's depreciation schedule may reveal annual depreciation deductions of $12,000–$20,000 in the early years of ownership. This depreciation is a non-cash deduction — meaning it reduces your taxable income without actually costing you any additional money — and can effectively turn a marginally negative property cashflow-neutral or even positive on an after-tax basis.

When Does Negative Gearing Make Sense?

Negative gearing makes sense when the following conditions are met:

• You are in a higher income tax bracket (32.5% or above) and the tax offset is meaningful
• The property is located in a strong capital growth corridor — so the long-term price appreciation more than compensates for the annual holding cost
• You can comfortably absorb the ongoing out-of-pocket cost without financial stress
• You have a medium to long-term investment horizon (minimum 7 years) to allow growth to compound