What Type of Property Should You Buy First? A No-Nonsense Guide

Choosing your first investment property is one of the most important decisions in your investment journey. With so many options — house or apartment, new or established, metro or regional — it’s easy to feel stuck.

There’s no single best answer for everyone, but there is a right answer for your personal situation. The key is understanding how different property types align with your goals.

Start With Your Investment Objectives

Before you explore specific property types, take a step back and consider what you’re aiming to achieve.

Do you want:

• Long-term capital growth?

• Consistent rental income?

• Strong tax outcomes?

• A stepping stone to grow your portfolio?

Clarity on your investment strategy makes the property selection process far more focused and effective.

New vs. Established Properties

New Properties — such as completed townhouses, house-and-land packages, or off-the-plan homes — offer a range of benefits:

• Strong tax depreciation allowances

• Low maintenance and modern appeal

• High tenant demand in well-located developments

• Clear fixed pricing with fewer renovation or repair uncertainties

Some investors may question capital growth in certain areas, but when location and product quality are well-matched, new properties can offer both solid rental returns and long-term potential.

Established Properties can appeal to investors looking for:

• Higher land content, especially in older suburbs

• Opportunities to renovate or add value

• A wider range of locations and dwelling types

They do, however, come with higher upkeep and limited depreciation.

The takeaway?New properties suit investors seeking efficiency, stability, and tax advantages — especially when chosen with a long-term outlook. Established homes may suit those looking for value-add opportunities or growth via renovation.

Houses vs. Apartments

This decision often depends on budget, market conditions, and your investment strategy.

Apartments and Townhouses:

• Can offer strong yields in high-demand urban areas

• Are typically more affordable, helping investors enter the market sooner

• Often appeal to young professionals, downsizers, and renters seeking lifestyle locations

Houses:

• Offer greater land value, which can support long-term capital growth

• Provide flexibility for future upgrades, secondary dwellings, or land use changes

• Require higher upfront investment and maintenance planning

Both can work well — the key is selecting the right asset in the right location.

Let Location Guide the Decision

No matter what property type you choose, location will play a significant role in performance.

Look for areas with:

• Strong population growth and infrastructure investment

• Low vacancy rates and rising rental demand

• Proximity to transport, schools, and amenities

• Signs of gentrification or lifestyle appeal

A well-positioned new build may outperform a poorly located established home — and vice versa.

Don’t Overthink It — Focus on Momentum

Many first-time investors fall into the trap of over-analysing every decision. In reality, the most important thing is to take the first step with a clear plan.

Look for a property that:

• Aligns with your current borrowing capacity

• Offers long-term security and investment potential

• Positions you to take your next step with confidence

Your first investment doesn’t have to be perfect — it just needs to move you forward.

Let’s Make the First Step Count

Still not sure what to buy or where to start? We help investors match their goals to the right property strategy — whether that means new, established, house, or townhouse — and ensure every decision is backed by experience and data.

Disclaimer: This article is for general information only and does not constitute financial advice. You should seek advice from a qualified professional before making any property or investment decisions.