A Practical, Honest Guide for First-Time Investors (Minus the Hype)
Everyone around you seems to be talking about buying an investment property.
People at barbecues who suddenly speak like economists.
And maybe you’ve caught yourself thinking: “Am I missing out? Should I be buying one too?”
This is exactly how a lot of first-time investors start their journey. Sometimes in the right direction… sometimes straight into regret.
Let’s really talk about it — calmly, honestly, and with the bigger picture in mind.
Why So Many People Are Suddenly Buying Investment Properties
Other times it’s that very human feeling of “if they’re doing it, maybe I should too.”
Add social media to the mix — influencers posting renovations, Airbnb income screenshots, and “I bought three properties in six months” stories — and it’s easy to feel like you’re behind.
Everyone’s buying for different reasons. Everyone’s finances are different. And not everyone who buys is doing it wisely.
Here’s Why FOMO Is Dangerous… But Also Useful
Let’s be real…..FOMO gets a bad rap — but it’s actually very human and sometimes, it nudges people into making big moves they’ve been putting off for years.
The problem isn’t the FOMO itself - tt’s acting on it without a plan.
But letting FOMO be the push that makes you finally explore investing? That can be powerful.
Just make sure it’s informed, calm, and tailored to your goals — not someone else’s.
“Is Now a Good Time to Buy?” The Question Every First-Time Investor Asks
There’s no perfect market. There’s only the right strategy.
But here’s what we do know:
- Rents across Australia are still rising
- Vacancy rates remain at record lows
- Population growth (especially migration) is increasing
- The housing shortage is not going away
- Construction costs are high, pushing people back into established homes
- Over the long term, well-chosen properties still outperform most asset classes
And they create opportunity — especially for the patient investor who buys well.
If you buy the right thing, in the right place, with the right plan.
Here’s What You Should Not Do (But Most First-Timers Do Anyway)
I’ve seen these mistakes too many times, and they’re often made by people driven by FOMO.
❌ Don’t buy what your friend bought - Your friend’s income, goals, risk profile, borrowing power, and lifestyle are not yours.
❌ Don’t buy in your own suburb just because it’s familiar - Most investors massively limit their options this way.
❌ Don’t chase the cheapest property you can find - Cheap properties can be cheap for a reason. Often multiple reasons.
❌ Don’t get seduced by pretty renovations - Pretty does not mean profitable.
❌ Don’t assume all property goes up in value - Wrong. Some underperform for decades.
❌ Don’t rush because someone else “got in early” - Their timing isn’t your timing.
FOMO is manageable if you recognise it and keep your decisions rational.
So… Should You Buy an Investment Property? Let’s Break It Down
1. Start with your “why.”
Are you buying for:
- long-term wealth?
- passive income?
- a tax advantage?
- future security?
Your “why” determines your strategy.
2. Understand what you can realistically afford.
This is where a mortgage broker becomes your best friend. Your borrowing power sets your boundaries — and protects you.
3. Decide whether you need cash flow or capital growth.
Some investors need rental income to help hold the property. Others want the biggest long-term growth possible.
4. Know your risk tolerance.
Are you okay with short-term dips? Can you handle interest rate changes? Do you have buffer savings?
5. Be honest about how hands-on you want to be.
Renovator? Or set-and-forget?
6. Get clear on your timeline.
Property is a long game. 5, 10, 15 years. Sometimes longer. When you understand these things, the “should I buy?” question becomes a lot clearer.
Why It Might Be a Great Time for First-Time Investors
Let me give you the optimistic, opportunity-focused perspective — because yes, there are strong reasons to take action right now.
✔ Rental yields are strong : Higher rents = better cash flow than a few years ago.
✔ Property supply is low : Limited supply pushes values up over time.
✔ Migration continues to surge : More people need housing — investors benefit.
✔ Construction is expensive : Buyers are turning to established homes, increasing demand.
✔ Interest rates may stabilise : You don’t need perfect rates — stability is enough.
✔ Early investors usually win the long game : Time in the market beats timing the market. It’s cliché because it’s true.
✔ You learn best by doing : Sometimes the first investment is the hardest simply because psychologically, it’s new territory.
And the people who take calculated action sooner — not reckless, rushed action — tend to build the biggest portfolios over time.
But… Only If You Buy the Right Property
Some properties grow, perform, and generate long-term wealth. Others stagnate.
Smart investors choose properties with:
- strong rental demand
- diverse local economies
- infrastructure spending
- population growth
- low vacancy
- scarcity of supply
- affordable price points
- long-term fundamentals
You need both.
This is where having an advisor — someone who studies markets daily — makes a massive difference.
A Real-World Example of FOMO Gone Wrong
Everyone told him it was “the next big thing.”
He stretched his budget, rushed the decision - didn’t research vacancy rates or long-term demand.
Three years later:
- rents fell
- prices barely moved
- the area had oversupply issues
- his friends all quietly admitted they made a mistake
But he was the one who nearly had to sell at a loss. FOMO moves fast. Regret lasts longer.
And Here’s a FOMO Story That Worked Out Brilliantly
Another client of mine — also a first-time investor — felt left behind as everyone around her was buying property. But instead of rushing, she reached out, asked the right questions, and built a strategy.
We found a suburb with:
- strong population growth
- tight rental supply
- affordable entry price
- infrastructure projects
- improving yields
- solid long-term projections
She bought well because her property grew in value and the rental income rose steadily. And now she’s planning investment number two.
So… Should You Buy One Too?
Here’s my honest, advisor perspective:
If you can afford a well-located, research-backed investment property that aligns with your long-term goals — then yes, it’s absolutely worth considering.
But because property, when chosen carefully, can be a powerful wealth-building tool in Australia. If you’re buying for the right reasons — and with the right support — you’re giving yourself the chance to get ahead sooner.
Final Thoughts
But you do need to be informed.
If you want help knowing where to start, how to avoid mistakes, and how to choose a
property that fits your goals instead of someone else’s… I’m here.
As a buyer’s advocate, I help first-time investors make confident, strategic decisions — not emotional ones.
A quick conversation could save you months if not years of guesswork.