Where to Buy an Investment Property in Australia: A Research Checklist

There is no single best place to buy an investment property in Australia. The right location is the one that fits your budget, your goal (rental income, growth or both) and your time frame, and that still looks sound when you check it against official data. Before you buy anywhere, check five things: who is moving there, how tight the rental market is, what is being built, what the planning rules allow next door, and what the property will cost you to hold.

This guide gives you a checklist you can use on any suburb or town, with the free government sources to use for each step, so you can decide where to invest in property on evidence. We do not pick “best suburbs” here, because a suburb that suits one investor can be wrong for the next.

What should I decide before I look at locations?

• Your goal. Moneysmart explains that an investment property can make money through rent, through an increase in value, or both, and that you also carry ongoing costs, vacancies and loan repayments. Decide which matters more to you (Moneysmart, Property investment).
• Your budget. Your price range rules out some areas straight away. Work out what you can borrow and what you can afford to hold before you shortlist anywhere. A mortgage broker or lender can tell you your borrowing range.
• Your time frame. Buying, holding and selling property has large one-off costs, so property usually suits a long time frame.
• How hands on you want to be. If you buy interstate or in a regional town, you will rely on a property manager and local advice.

How do I check who is moving to an area?

Population growth is one sign of future demand for housing. The Australian Bureau of Statistics publishes population estimates for every capital city and region each year. For example, its 2024-25 release shows the capital cities grew by 324,700 people (1.8%) in that year (ABS, Regional population 2024-25).

To look up a specific area, use ABS Data by region. Search the suburb or council and check population change over several years, the age mix, household types, how many people rent, and income levels. Look for steady growth over time, not one good year.

How do I check the rental market?

Several state governments publish official rent data by area. Two examples:

• Victoria: the Homes Victoria Rental Report gives quarterly rents and lettings by area.
• New South Wales: the NSW Rent and Sales Report, published by the NSW Government.

Check the typical weekly rent for the property type you want, how rents have moved over several years, and how many similar homes are listed for rent right now. Then ask two or three local property managers how long a property like it takes to lease. Use our rental yield calculator to turn price and rent into a gross yield.

How do I check what is being built nearby?

Transport, hospitals, schools and employment hubs can change how people live and work in an area. The Australian Government’s Infrastructure Investment Program project map lists federally funded road and rail projects near any place. State transport and health departments list their own projects.

For each project, check its status: announced, funded, under construction or open. An announced project can be delayed, changed or cancelled, so give more weight to projects that are funded and under way.

How do I check the planning rules and risks for a street?

Every property sits in a planning zone, and many have overlays for things like flooding, bushfire or heritage. These affect what you can do with the property, what can be built next to it, and sometimes insurance costs. Each state has a free map:

• Victoria: VicPlan
• New South Wales: NSW Planning Portal Spatial Viewer
• Other states and territories: the state planning department’s map, or the local council’s planning scheme

Check the zone, every overlay, and any large development sites nearby. Read the contract and the vendor’s disclosure documents with your conveyancer or lawyer before you sign.

How do I compare holding costs between areas?

Two properties with the same price and rent can cost very different amounts to hold. Compare council rates, water charges, insurance, strata fees for units, land tax, property management fees and a maintenance allowance. Stamp duty and land tax rules differ between states, so check the revenue office in the state you are buying in. Our cashflow calculator and stamp duty calculator help you compare.

This is general information only, not financial, tax or legal advice. Speak to a licensed adviser about your own situation.

How do I shortlist suburbs for capital growth or rental yield?

There is no single list of the best suburbs to invest in, because the right suburb depends on your budget, your goal and how long you plan to hold. A shortlist built from your own numbers is more useful than a ranking written for everyone. We do not publish suburb picks or growth predictions.

1. Decide whether your next purchase is mainly for rental income, long term growth, or a balance of both.
2. Set the price range your lender and your cashflow allow, then keep only areas where suitable properties sell in that range.
3. For each area, check population change, rents and vacancy, and new supply using the official sources above.
4. Check the planning zone, overlays and flood or bushfire risk for the streets you are looking at.
5. Compare holding costs, then run the numbers on a real listing with our rental yield calculator and property growth calculator.
6. Inspect, or have someone inspect, before you commit to a suburb.

Past growth in a suburb is not a reliable indicator of future growth.

The location research checklist

1. Goal, budget and time frame written down
2. Population change over five or more years (ABS Data by region)
3. Share of renters, household types and incomes in the area
4. Weekly rents and rent history from the state rental report
5. Number of similar homes for rent now, and leasing times from local property managers
6. Funded or under construction infrastructure within a reasonable distance
7. Planning zone and overlays for the street and property
8. Large development sites or new estates nearby that could add supply
9. Holding costs: rates, water, insurance, strata, land tax, management, maintenance
10. Gross yield and cashflow worked out with your own numbers
11. Contract and disclosure documents reviewed by a conveyancer or lawyer
12. Building and pest inspection booked before you commit

How do I find investment property opportunities?

Once the checklist has given you a shortlist of areas, set alerts on the property portals for the property type and price range you want, and talk to local selling agents so they know your brief. Some properties sell before they are advertised. Consumer Affairs Victoria lists access to off market properties as one of the things a buyer’s agent can help with (Consumer Affairs Victoria).

How can a buyers agent help with where to buy?

Citadel Agency is a licensed buyers agency (estate agent’s licence 092247L) that acts only for buyers. We run this research for our clients across Australia, then find, check and negotiate the property. Our track record is $165M+ in deals transacted, with most purchases secured off market or pre market. See our results, read about our buyers agent service, or book a call to talk through your brief.

Questions, answered

Where is the best place to buy an investment property in Australia?

There is no single best place. The right location depends on your budget, your goal and your time frame. Check population trends, rents, infrastructure, planning rules and holding costs for any area before you buy.

Where can I find official population data for a suburb?

Use ABS Data by region, a free Australian Bureau of Statistics tool. Search the suburb or council area to see population change, age, household types and how many people rent.

Where can I find official rent data?

Several state governments publish rent data by area, such as the Homes Victoria Rental Report and the NSW Rent and Sales Report. Local property managers can tell you current leasing times.

Should I buy an investment property interstate?

Some investors do, often because of their budget or goal. Stamp duty, land tax and tenancy laws differ between states, so check the rules in the state you are buying in and plan who will manage the property.

How do I check if a property is in a flood or bushfire area?

Look up the address on your state’s planning map, such as VicPlan in Victoria or the NSW Planning Portal Spatial Viewer, and check the overlays. Your local council and insurer can tell you more.

General information only. It does not take your objectives, financial situation or needs into account and is not financial, tax, credit or legal advice.