Building a property portfolio that helps you generate wealth requires a long-term, strategic approach. With investment lending booming across the country, you might be thinking about buying your first or next property, but what is it that sets novice investors apart from seasoned pros?
We asked Mortgage Choice brokers to share their experience and advice to help you level up your property investment strategy.
Don’t let perfection hold you back
For broker Terence Hammond, mindset is everything. He warns against “analysis paralysis”, where buyers obsess over finding the perfect property. “I see many first-time investors overthinking the process. They freeze up looking for the ‘unicorn’ property and end up sitting on the sidelines while the market moves,” he said.
“If you are in a position to buy, don’t wait for the perfect time or the perfect property, because chances are it will never come. A high-performing investment property might only tick three out of five boxes for you. But, if you wait for all five boxes to be ticked, you might still be waiting years to purchase.
While experts agree buying at the bottom of the market is ideal, Hammond notes that waiting for the perfect time is a risky strategy.
“Holding an asset like property long term is the key to wealth generation. The investor who bought a ‘good’ property three years ago has likely made significant gains, whereas the investor who is still waiting for the ‘perfect’ time to enter the market has missed out.”
Plan for the ‘what ifs’
Broker Shawna Lavis says that novice investors need to consider the ‘what ifs’ as part of their strategy. “What if your property is vacant for a period? What if the hot water system breaks? Smart investors plan for unexpected costs like these.
“A broker can help you stress test your income against these sorts of scenarios to ensure you aren’t just technically able to service the loan but can comfortably handle the curve balls life throws at you.”
Build your team
Broker Richard Brown had been investing in property for more than 20 years before he began his career as a broker. His number one lesson? Don’t go it alone.
You might be able to get away being a DIY landlord and property manager when you own a single investment property, but if you have your sights set on building a portfolio, you’ll want a team of experts around you.
A broker will be a key player when it comes to securing property finance, and a conveyancer will be critical on the legal paperwork. You’ll also want a great accountant on your team to advise you on effective tax structures, and a buyer’s advocate can help you choose where and what to buy.
Brown says, “If your plan is to build a portfolio, picking the right properties will be key, because if you have flat or negative growth, you won’t be able to access the equity you need to make subsequent purchases. I’ve used buyer’s advocates to build my own portfolio and have recommended them to my customers. They know the market and its cycles and can be especially helpful if you’re buying interstate.”
When it comes to getting your finance sorted to buy investment property, broker David Thurmond warns investors against waiting until they’ve found the property they want to buy to connect with a broker.
“Pre-approval is crucial. If I’ve got pre-approval in place for you, I can usually secure formal approval within a day or two of you signing the sales contract. If you come to me without having your pre-approval and you’ve purchased unconditionally and already paid your deposit because you thought you’d easily qualify for finance, you could risk losing your deposit if the lender’s valuation falls short of the purchase price.”
Structure over rate
Inexperienced investors often obsess over interest rates, but brokers say that seasoned investors prioritise borrowing capacity and flexibility.
The PropTrack Home Price Index shows that the capital city growth rate jumped by more than 47% in the five years to October 2025.
Brown says, “As an investor, the best loan is the one that enables you to buy the property you want. Paying a slightly higher interest rate will be insignificant compared to the capital growth from an investment property that appreciates over time. That said – you should review your loans regularly with your broker to ensure you’re still on the best rate for you.”
As you start to build your portfolio, you may find that you reach the limit of your borrowing power with major lenders.
Hammond says this is where non-bank lenders can become an investor’s secret weapon. “Smaller or non-bank lenders might calculate serviceability differently – for example, using 100% of rental income rather than 80%, which can have a huge impact on your borrowing power.”
The bottom line
Building a property portfolio isn’t just about collecting keys; it’s about having clear goals and being strategic about your financing. As your portfolio grows, your lending needs will become more complex, and expert advice will be critical.
