6 Essential Factors to Consider When Buying an Investment Property in 2025

Looking to build wealth through property investment? As Sydney’s leading buyer’s agents, we’ve helped countless investors make informed decisions. Here’s your comprehensive guide to choosing the right investment property in 2025.

1. Understanding Investment Property Fundamentals

An investment property is more than just real estate – it’s a wealth-building tool that can provide both passive income and capital growth. Unlike buying a home to live in, investment properties require a strategic approach focused on financial returns.

2. Capital Growth Potential

Before investing, consider these growth indicators:

• Median sale prices in the area
• Historical price trends
• Future development plans
• Infrastructure improvements
• Market demand patterns

Pro Tip: Use comprehensive market research tools to analyse growth trends in your target suburbs.

3. Rental Yield and Demand

Understanding rental yield is crucial for investment success. Here’s how to calculate it:
Gross Rental Yield = (Annual Rental Income ÷ Property Value) × 100

For example:
Property Value: $500,000
Weekly Rent: $500
Annual Rent: $26,000
Gross Yield: 5.2%

Remember to consider:

• Vacancy rates
• Local rental demand
• Tenant demographics
• Maintenance costs
• Property management fees

4. Location Matters

The right location can make or break your investment. Look for:

• Proximity to public transport
• Access to schools and shopping centers
• Local employment opportunities
• Future infrastructure projects
• Community safety and amenities

5. Property Type Selection

Choose between:

Houses:

• Higher capital growth potential
• More maintenance required
• Greater control over property
• Typically higher rental income

Apartments:

• Lower entry price
• Shared maintenance costs
• Body corporate fees
• Often better rental yield

6. Age and Features

Consider:

• Building condition
• Maintenance requirements
• Depreciation benefits
• Modern amenities
• Energy efficiency
• Storage options
• Parking availability

Expert Tip: Always get professional building and pest inspections before purchasing.

Ready to Start Your Investment Journey?

At Codex Property, we specialise in helping investors find high-performing properties in Sydney’s most promising suburbs. Our expert team can:

• Analyse market opportunities
• Calculate potential returns
• Negotiate the best price
• Handle the entire purchase process

Book a consultation with our property investment specialists today to learn how we can help you build your property portfolio.