When it comes to buying property, owner-occupiers represent a significant portion of the market and when they’re purchasing property they’re making decisions emotionally—they have to live there, after all.

But investors are a whole different kettle of fish. They buy with their calculators, looking at all the figures, to determine whether the investment is worthwhile or not.

So what makes and investment grade property, and how do property investors figure out what properties are worth purchasing?


In this episode of The Property Couch, Australia’s property experts Bryce Holdaway and Ben Kingsley discuss what makes an investment grade property, along with the key considerations for investing in property.

Ben and Bryce are adamant: The bottom line is any property can be investment stock, but not all properties are investment grade. Being able to decipher the difference is the fundamental point here..

Four factors typically make up an investment grade property. These include: property features that would appeal to an owner-occupier, land scarcity, lifestyle drivers, and mainstream lending appeal.

Why do these factors matter? Land scarcity can contribute to price increases, particularly in high-demand areas. And lifestyle drivers like proximity to cafes, bars, restaurants, shopping centres, schools, and parks, can play a role in whether people actually want to live in the area.

Bryce and Ben discuss the importance of these factors in the context of the property increasing in value over time and it’s ability to provide a strong return on investment.

Read The Property Couch guide to what makes an investment grade property, including key considerations for property investment: https://www.realestate.com.au/advice/makes-investment-grade-property/

Read more of our budgeting tips and tricks: https://www.realestate.com.au/advice/finance/budgeting/

Subscribe to find more budgeting videos!

Liked this video? Don’t forget to like, comment and share this video with your friends!

This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.