Last updated: September 2026.
1. Introduction
Every now and then, people ask me how I worked out which suburb and property to buy when I was buying my first property. So today, I’ve decided to write this guide so that next time I get asked, I can point people to this article instead of trying to remember every single metric off the top of my head and explaining what they mean and what to look for.
1.1 Disclaimer
Before I go any further, here is a disclaimer. I am not a property investing expert by any measure, and I’m not a licensed financial adviser, buyer’s agent, or tax agent. This article is 100% NOT financial, property, or tax advice.
It’s general information based on what I learned and what I did myself. It doesn’t take into account your goals, your financial situation or your needs. Before you buy anything, speak to a licensed professional who can assess your specific circumstances.
Every threshold and cut-off in this guide is what I personally look for. They’re the guidelines I picked up and adapted, not industry standards and definitely not rules. Where I say “I look for under 2%”, read that as a description of my own filter, not a recommendation for yours. Different goals, budgets and timeframes require different numbers, and you should form your own view with someone licensed to help you.
You’ll also see me explain concepts like equity and borrowing against it. I’m only describing how it works. Whether a lender will actually let you, and whether it’s a sensible move for you, depends on your income, your existing debts, your risk tolerance, and the lender’s policy at the time. That’s a conversation you need to have with a broker or a licensed adviser, because I’m not qualified to cover it.
Everything here reflects my understanding at the time of writing, including the property markets, government policy, and planning rules. While I try to keep this guide up to date, the tools I mention may change, and some of the information will be out of date by the time you read it. Make sure you check anything that matters to you thoroughly against the original source. Past performance is not indicative of future results, and no property purchase is guaranteed to go up in value.
I’ve written this guide in good faith but I can’t guarantee it’s accurate or complete, and I’m not responsible for any decision you make or any loss you suffer as a result of reading this guide. It’s free, it’s my opinion, and you’re responsible for making decisions based on your unique circumstances.
Lastly, I’m from Victoria, so a lot of the examples I give will be in Victoria, and the tools and zoning rules I mention will be from the Victorian government. Take the principle and apply it to where you live or where you want to buy. I’ll also show you how to search on Google to find the equivalent tool or rule in your own state.
I did take a property investing course from a very well respected investor in the field, which gave me the skill to invest in property in every state in Australia from the comfort of my home. But the course demands that you use a few professional tools to beat the market and squeeze out extra percentage points of return. Those tools would cost over $200 a month, and I don’t think that’s realistic for most people. Here is why.
First, most people only want to buy locally, within about a two-hour drive from where they live, and I completely get why. They work hard for their money and they want to see and feel the tangible product that their money buys. Second, most people don’t need to beat the market. They’re happy with market return and just want some skin in the game so their money can work for them instead of just sitting in the bank. Third, most people are busy professionals who don’t have hours to spend on extensive research, so paying $200 a month for tools they barely have time to use is a waste when they could access free information and take action quickly.
So in this guide, I’ll show you how I’d run the entire research process using completely free tools that anyone can access.
1.3 What this guide will cover
This guide will cover:
- How to work out which suburbs you can afford
- How to filter down to the good suburbs
- How to pick the right property inside that suburb
This guide will NOT cover, because I’m simply not qualified to talk about these:
- The finance and lending aspect of purchasing a property
- Taxes related to property investing
- Legal structures related to property investing
1.4 Who this is for
This guide works whether you’re buying an investment property or buying a home to live in. The suburbs that make good investments are usually the same suburbs where a home grows in value. In saying that, I’ve written this guide with capital growth as the number one priority and rental yield as a secondary one. Let me explain.