The fundamental principles to buying property always come back to a great parcel of land, close to good amenities, with fantastic planned infrastructure and the potential to add future value. Land in great areas will always appreciate. Too often we see investors applying a strategy solely for tax reduction purposes. Whilst this is ok, and an important consideration, it should never dictate the type of property and location.
In terms of the actual property, we look for character in a property that can not otherwise be easily or readily replicated. By that we mean, buying a home with period and character features that will one day, be short in supply, creating emotional owner-occupier demand.


The makeup of purchase for us is 80% location and 20% property. By this we mean, the emphasis of the purchase is heavily skewed towards the location and the land make up rather than the actual property itself.


These are our key fundamentals to buying a property. And fundamentals we live and preach on a daily basis.


The above approach most definitely fits the investment mould you prescribed to us; blue-chip location, long-term capital growth prospect and established growth areas. We have washed this with all our key indicators to provide the best solution for your investment needs.

Our Purchase 

For investment property purchases, we are big advocates of purchasing houses - not apartments - in gentrifying regions of major capital cities that are within 15km of the city CBD or 2km from major secondary cities. For diversification of portfolios, we also look to major regional cities with good access to a major capital city via public transport, planned infrastructure and not reliant on one economic driver. Providing a point of difference in clients portfolios and generally, a more robust option to offset other blue-chip markets.


We start with a macro approach to the Australian market, then qualify each state against our pre-requisite markers. We then determine the best regions within these markets that best match your purchasing criteria.


We hand select our preferred markets using the following (but not limited to) indicators (we have a benchmark for each identifier to accurately score each region).

If a particular area passes our benchmark score, we then take a deep dive into the suburbs within and extract as much information as possible through our subscriptions, estate agent contacts, reports, local councils and site visits. Three key indicators we like are planned infrastructure, public transport links and areas affected by the 'ripple effect of growth'.

  • Overall cash flow position with total outgoings not more than $500/month

  • The ability to buy one property per year, so it's important to nurture that cash flow position to ensure the continued ability to borrow, whilst managing that fine line of capital growth 

  • Preference of a major capital city and not regional centres

  • Open to renovations, however, to manage the cash flow and max. buy in of $170k, we need to really hand select specific regions to suit this approach. 


Based on our key fundamentals, purchasing methodology and your investment goals, we are recommending houses in Brisbane’s North and North East regions.


Secondary to this, we would recommend houses in Ballarat. However, there's a bit more to this as an option. To get the numbers closer to your preferred out of pockets and upfront costs, we'd look at a 12% deposit - opposed to 20% - and an interest only mortgage product. The option still nets your out of pockets at $850/month, however, it's a stronger market for capital growth. This option also has the ability to renovate and create value/equity in your portfolio. The recommended renovation would be minor, but enough to help extract additional equity from the property. Ballarat is in the hyper-growth phase, meaning, if you were looking to purchase another property next year, then you would still have time to revert back to the Brisbane house option as that market is rising, but not as rapidly as the Ballarat, where we'd expect growth by a further 10-15% over the 12-month period.


To help reduce your mortgage debt and aid in creating a fluid cash flow, we highly recommend any additional funds you are holding should sit in the mortgage offset account. This will reduce the interest you pay on the loan and ensure you are paying a higher proportion of principal.


We have provided a full analysis of each region, please click on the below buttons to see more. 


So, now that's all said and done, we'd love to get your feedback on our findings. Please click on the buttons above to see our detailed findings in each region. Please take the time to review our feedback and we will put a time in the diary to catch up to discuss your thoughts further.

* Milk Chocolate price data used on this website is sourced and relies upon information supplied by a number of external sources (including governmental authorities). This data is supplied on the basis that while Milk Chocolate believes all the information provided will be correct at the time of writing, it does not warrant its accuracy or completeness and to the full extent allowed by law excludes liability in contract, tort or otherwise, for any loss or damage sustained by you, or by any other person or body corporate arising from or in connection with the supply or use of the whole or any part of the information on this website through any cause whatsoever and limits any liability it may have to the amount paid to the external sources for the supply of such information.