Is Investment Property Still Worth It?
Wondering if investing in property is still smart in 2025? We break down the risks, returns, insights, and expert advice to help you decide.
May 28, 2025
Written by:
Erin Truscott
Senior Financial Adviser
Owning an investment property has long been a core part of the Aussie dream. Whether it’s your mate who “got in at the right time” or your uncle who’s flipped three houses, property investment in Australia has been seen as a reliable way to build wealth.
But in 2025, things feel a bit different. House prices are still sky-high, interest rates have climbed, and rental yields in many areas aren’t exactly inspiring confidence. For new investors — or even seasoned ones — the big question is back on the table: Is property still worth it?
In this article, we’ll unpack that question with a practical, no-nonsense take. We’ll look at what everyday Aussies are saying online, crunch some real-world numbers, and hear from Erin — a Senior Financial Advisor and Partner at Direct Wealth — who’ll share her professional take on what makes property a smart move… or a potential misstep.
Whether you’re curious, cautious, or already halfway through a pre-approval, this guide is here to help you see the full picture.
If you want an honest look at how Aussies feel about property, Reddit is a goldmine. A recent thread in r/AusFinance sparked a genuine, sometimes blunt, discussion around whether investing in property still stacks up in today’s market.
Here’s a breakdown of the recurring themes, concerns, and motivations that came up.
“If you’re only earning $800 a week on a $1.5M place, it’s not an investment — it’s a liability.”
“I’m down $50K a year and hoping the value goes up. Not exactly a stress-free investment.”
“That money could grow faster in super or ETFs without the headache of tenants and repairs.”
“I’m in it for capital gains. The rent barely covers anything.”
“You can’t sell a bedroom if you need cash next month. It’s all or nothing.”
Despite the challenges, plenty of Aussies are still backing property — and doing so with clear intent and long-term strategy in mind.
“No other asset lets you leverage five times your capital with this kind of long-term upside.”
“Even with $50K in losses, I’m still ahead after tax and growth. The system is built for it.”
“It hurts in year one, but rents climb. After 10–15 years it flips to positive and the asset keeps growing.”
“Sydney’s done 5.8% a year for two decades. That’s why I stay in — it works if you hold long enough.”
It wasn’t all black-and-white, though. Some Reddit users took a more strategic view — pointing out that not every investment is created equal, and success often comes down to the right strategy and execution.
“Don’t generalise — a $400K house with $500/week rent in Adelaide can crush a $1.5M property with poor yield in Sydney.”
“Buy, build, refinance — I’ve added equity from day one by taking a hands-on approach.”
“It’s not sexy, but I bought 10 years ago and the rent’s doubled while my repayments haven’t changed.”
This debate came up a lot in the Reddit thread — and as usual, there was no clear winner.
Property appeals to those chasing leverage, stability, and the comfort of owning something tangible. Shares (especially ETFs) are more liquid, easier to diversify, and suit hands-off investors who want flexibility and lower ongoing effort.
“They’re just different tools. Depends what you’re building, and what kind of investor you are.”
We’ve unpacked this in a lot more detail — including a side-by-side table and expert opinion — in our dedicated article:
Property vs Shares in Australia: Which Investment Option Is Right for You? (COMING SOON).
To help visualise the difference in returns, we compared two simple scenarios — one investor uses $375K as a property deposit, the other invests the same amount in a low-cost ETF portfolio.
The result? Property has higher potential upside due to leverage, but also higher risk, holding costs, and cash flow stress. Shares offer more flexibility and ease of access — but without the boost of borrowed money, your upside is capped.
Want to see the full breakdown, including real numbers, assumptions, and pros and cons? Check out the full comparison here (COMING SOON).
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Both options have their strengths. The property investment benefits from leverage, which can supercharge returns — if the market performs. But it also comes with high entry costs, ongoing expenses, and the risk of being cash flow negative for years.
The ETF investment is simpler, more flexible, and less stressful. While the upside may not look as dramatic on paper, the ease of management and liquidity appeal to many investors — especially those early in their journey.
The bottom line? There’s no “right” answer — only what’s right for your risk tolerance, cash flow, and long-term strategy.
When it comes to property investment, there’s no shortage of opinions — but it helps to hear from someone who sees both the numbers and the people behind them.
We asked Erin, Senior Financial Advisor and Partner at Direct Wealth, for her perspective on investing in property right now. Her take? Property can absolutely be a strong wealth-building tool — but only when it aligns with your bigger picture.
“From a professional standpoint, we look at property like any investment: it depends on your goals, timeframe, and risk appetite. Property can deliver strong long-term returns, but it’s rarely set-and-forget and often carries higher upfront and ongoing costs than people realise.”
That alone is a powerful reminder. Many people see property as a “set and forget” investment, but the truth is it often demands serious time, effort, and cash — especially early on.
“Leverage and tax benefits can amplify gains — but they also increase your exposure to market shifts. You need to think about cash flow, holding costs, diversification, and your exit strategy.”
This is where things can get risky. Yes, leverage can boost returns — but it also magnifies losses if the market takes a turn. That’s why Erin emphasises having a clear strategy and understanding your numbers before diving in.
“It’s not about picking one over the other — property vs shares. Both can play a role in a smart investment plan. What matters is whether it fits your lifestyle, risk tolerance, and financial goals.”
In other words, it’s not a battle between property and shares. Both have their place — and the best choice depends on your personal goals, your risk appetite, and how hands-on you want to be.
“And remember — this isn’t personal advice. Always speak to someone who understands your full situation before making big investment decisions.”
And perhaps most importantly: don’t go it alone. A great financial adviser can help you see beyond the hype and map out a strategy that actually works for your life.
🏁 Bottom line: Property can be a great wealth builder — but only if it fits you. Strategy, structure and sound advice are key.
Thinking about buying an investment property? Good on you — but before you dive in, it’s worth taking a step back and doing a quick check.
Here’s a simple but powerful checklist to help make sure you’re not just swept up in the hype:
We’re not saying property’s a bad idea – it can work. But it’s not something to leap into just because “everyone else is doing it.” If you’ve ticked most of the boxes above, you’re likely on the right track.
The key is to go in with eyes wide open, a solid buffer, and a plan that suits you — not just what worked for your mate’s cousin ten years ago.
A lot of people focus on what the property might be worth in 10 or 20 years. And sure, long-term capital growth is a big part of the appeal.
But it’s not the full story. You’ve also got to factor in:
The smart move? Always calculate your total return — not just your hopeful profit. That means weighing up income, expenses, and growth, and being realistic about how much risk you’re comfortable taking on.
There’s no denying that property investment still holds plenty of appeal for Australians. It’s familiar, it’s tangible, and for the right investor, it can be a powerful long-term wealth builder.
But here’s the reality — it’s not a shortcut to riches.
Owning an investment property takes planning, patience, and a decent level of financial resilience. It’s not set-and-forget. It comes with risks, responsibilities, and real cash flow considerations.
Whether or not you should invest in property depends on you. Your income, your goals, your appetite for risk, your stage of life — all of it matters.
So before you take the leap, do the work:
If property fits into your overall strategy, great. If not? That’s fine too. The smartest investment is the one that helps you sleep at night — and actually moves you closer to your goals.
Property can be a powerful way to build long-term wealth — but only when it fits your goals, your finances, and your lifestyle. That’s where professional investment advice makes all the difference.
In this short video, Erin, one of our senior advisors, shares how we help clients navigate their investment options — from understanding the numbers, to weighing up property vs shares, to building a plan that actually works in the real world.
Whether you’re new to investing, looking to buy your first property, or wondering if you should diversify, we’re here to help you make smart, informed decisions with clarity and confidence.
It can be — but it’s more important than ever to run the numbers carefully. With high prices and rising interest rates, many properties are now cash flow negative.
However, if you’ve got a long-term outlook, a financial buffer, and a good buying strategy, property investment may be able to deliver solid growth over time.
It’s not as easy as it was 10 years ago — but for the right person, it can be a viable path to wealth.
It depends on your goals. Investing in property offers leverage (borrowing to grow your returns), potential tax benefits like negative gearing, and the appeal of a physical asset. But it also ties up a lot of money and takes effort to manage.
Shares — especially through ETFs — are easier to diversify, require a much lower upfront investment, and are far more liquid. They’re great for passive investors who want flexibility and low management.
To get into the market, you’ll usually need at least a 20–25% deposit — so on a $600K property, that’s $120K–$150K upfront. Then factor in costs like stamp duty, building and pest inspections, legal fees, loan setup, insurance, and a buffer for ongoing expenses.
Buying an investment property isn’t cheap — which is why it’s critical to make sure it’s the right move for your finances, not just something you “should” do.
Yes, it can be — especially in major cities where rental yields are low. Many properties are what’s called “negatively geared,” meaning the rental income doesn’t cover the mortgage and other costs.
Investors accept this short-term loss in exchange for long-term capital growth — but it only works if they can afford the shortfall for several years. If cash flow is tight, property investing might not be the best move right now.
That’s more common than ever. A growing number of Aussies are looking beyond the big capitals — buying in Adelaide, Perth, or regional areas where homes are more affordable and rental yields are often higher.
Remote investing comes with challenges (like managing from afar), but it can still be a smart strategy if you do your research and buy in the right areas.
Unlike shares, property is not a liquid asset. It usually takes weeks or months to sell, and you’ll face agent commissions, marketing fees, legal costs, and possibly capital gains tax.
If you’re unsure about your future cash flow or might need quick access to funds, investing in property may not offer the flexibility you need — and that’s important to know upfront.
Absolutely. Buying investment property is a big decision with long-term consequences. A licensed advisor can help you:
Good advice can help you avoid costly mistakes — or confirm you’re on the right path.
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