Is Your Investment Property Really Performing? Here's What to Look For

When it comes to investing in property, time in the market is often more important than timing the market. But that doesn't mean you should set and forget. Whether you’ve owned your investment for years or just a few months, it’s worth asking: Is my property really performing?

At Turley Property Advocates, we believe a smart investment is one that delivers strong capital growth, offers a decent rental yield, and stands the test of time thanks to a solid location and land component. Let’s break that down.

Capital Growth: Think Long-Term

Property investing is a long game. The best returns usually come from holding quality assets over time—especially in high-performing suburbs or strategic ‘bridesmaid’ areas that are on the cusp of gentrification. These neighbouring suburbs often offer better value with strong potential for capital appreciation as infrastructure, schools, and lifestyle amenities improve.

But not all capital growth is created equal. Properties with a good land-to-asset ratio—that is, more value in the land than the building—tend to perform better over the long term. Land appreciates, buildings depreciate. So if your investment is mostly bricks and mortar with little land value, it might be time to reconsider its long-term growth prospects.

Location Still Matters

You’ve heard it before: location, location, location. But what does that really mean in 2025?

A good investment property should be within reach of key lifestyle drivers—think transport links, good schools, shopping precincts, green spaces, and job hubs. These features make your property more attractive to both tenants and future buyers. If your property isn’t ticking these boxes, it may struggle to grow in value or command a premium rent.

Rental Return: Could You Be Earning More?

Even if your property is in a good location and poised for growth, poor rental returns can weigh down its performance. Ask yourself:

  • Is the property achieving market rent, or have you fallen behind?

  • Could a simple refresh—a coat of paint, new flooring, upgraded fittings, or modern appliances—justify a rental increase?

  • Are there opportunities to reduce vacancies through better management or by offering longer-term leases?

Sometimes a modest cosmetic upgrade can deliver a big improvement in rent and attract higher-quality tenants—especially in a competitive rental market like we’re seeing across Melbourne and the Mornington Peninsula right now.

Does Your Property Tick All the Boxes?

A high-performing investment property typically has:

✅ A strong or improving location (including quality bridesmaid suburbs)
✅ A solid land component with potential for future development or renovation
✅ Steady or growing rental income
✅ Long-term capital growth prospects
✅ Appeal to both tenants and future buyers

If your property doesn’t meet most of these criteria, it might be time to review your portfolio. And if you're looking to purchase your next investment, these are the boxes to tick before you commit.

Need a Second Opinion?

At Turley Property Advocates, we help clients make smart, strategic property decisions—whether you’re buying your first investment or reviewing an existing one. With deep market knowledge, access to off-market opportunities, and decades of combined experience, we’re here to help you build a portfolio that truly performs.

Let’s talk about your next move. Reach out to us for a no-obligation chat about your investment goals.

 

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2025 Federal Election: What it could mean for the Property Market