25 property investment tips for 2025

There's more to property investing than just saving lots of money, and here's 25 tips to make 2025 the year of real estate and financial success.

By James Fitzgerald, Managing Director, Custodian

| 17-12-2024 | Investment | 5 min read

Will 2025 present golden opportunities for property investors? (Image source: Shutterstock.com)

It’s been an up-and-down kind of 2024, with interest rates having gone north and the cost-of-living crisis hitting hard.

But it’s not all doom and gloom, there is a new year in sight and, believe it or not, property investment is not just for the rich.

For those looking to enter the housing market in the next 12 months, here are my top 25 tips for 2025.

Build habits

Start the new year by building positive habits around your money – whether it is saving, spending or investing.

Identify productive behaviour and take action to stick with it. Commit to 21 successive days of repeating a new habit and you are likely to retain it.

Exercise

Wellbeing comes from more than just being financially secure, which is why taking care of yourself is an important element.

Healthy body, healthy mind. Make the first hour of the day just for you. Wake up early and get your heart going, even better to do it device-free

Find your motivation

Think about what motivates you to save money and build wealth. What do you want? What position do you want to be in - or not in - 5 to 10 years from now?

When you have worked that out, it will motivate you to take action – and when things become challenging it will help you stay on course.

Manage screen time

The average Australian spends 5.5 hours a day looking at their smartphone alone.

Having good habits around screen time is essential to avoiding burnout and attaining clarity of focus

Try to turn off your phone for two hours before bedtime and on at least one day of the weekend.

Set goals and rewards

Set small goals and reward yourself when you meet them. Chart your progress to remind yourself how far you have come.

We grossly overestimate what we can achieve short term but grossly understand what we are capable of long term.

Look at the land, not the home

As an avid real estate investor, it is important to pay attention to the land, not the house that sits on it.

Land values will always increase more than the building, which generally decreases in value as it gets older.

For that reason, land with a house on it is a better investment than an apartment.

Find a mentor

Ask someone who is financially successful and who has values and beliefs that fit with yours if they will mentor you. It could be a family member, friend, work colleague or neighbour.

Catch up with them for coffee or a sandwich now and then and ask them to help you better understand how to be successful with money.

Cash can be useful

While most of our spending is done online these days, having physical cash can be the best tool to help you save.

The foundation principle of building wealth is spending less than we earn. It’s not fashionable to use cash anymore, but by withdrawing cash each week for your discretionary expenses (eating out, drinks, coffees, movies), you can ensure you save at least 10 per cent of what you earn.

Once it’s gone, that’s it. Keep track of how much you are spending and eliminate random spending.

Streamline your bank accounts

There are so many options for bank accounts these days but it’s best to keep it simple.

Set up three accounts: an everyday account, a ‘future’ account and an emergency account.

Get your salary deposited into the everyday account and pay your day-to-day expenses out of it. Set up the ‘future’ account with a different bank and set up an automatic transfer of 10 per cent of your pay into this from the everyday account.

The emergency account should be like the ‘future’ account but used only for one-off expenses that pop up during the year, such as medical bills, insurance and holidays.

Supercharge your savings

If your goal was to build up your savings, then it may be time to put in the extra work.

Do some overtime, take a second job or ask for a pay rise. Then try to increase your savings allocation from 10 per cent to 15 or even 20 per cent. It will make a huge difference.

Consider a term deposit

While not always offering the best interest rates, term deposits are still a good option to make sure your money is safely locked away and working for you.

If you have managed to save $10,000 or more, place it in a term deposit so it starts earning some interest.

Look after your mental health

Lack of control over personal finances can cause enormous stress and worry. Seek out a trusted loved one or professional help if you are suffering.

A problem shared is a problem halved.

Cash flow is important

Cash flow is the oxygen of investing, and it is important to not overextend yourself.

Invest in assets that pay for themselves. Don’t let the holding of your investment exceed 10 per cent of your take home pay.

Review your home loan

Is it time to switch from variable to fixed rate? It’s a good idea to fix your home loan for your principal place of residence.

Even saving half a per cent each year will add up to good savings and potentially take years off your mortgage.

Put your team in place

To be a successful investor, you need a good accountant, mortgage broker or banker, property manager and mentor.

No one who is successful got there on their own.

Consider your options

It may be worth considering using other people’s money to begin investing, whether that be a small loan or asking for money to invest from friends and family.

Don’t be afraid to ask for help but don’t expect a handout either. There are lots of older Australians looking for ways to get a return on their money.

Do your research

Investigate any government grants or concessions for which you are eligible, such as first home-buyers grants, concessions on stamp duty or other financial assistance packages.

Differentiate between needs and wants

While that new outfit may look amazing, it is important to keep your eyes on your long-term goals.

We need food and a roof over our heads. We don’t need an Xbox, concert tickets or an expensive new handbag.

Make sure you are 100 per cent in control of where our money goes, remember that.

Detox from your subscription services

Even spending less than $10 a month on pay TV services can add up – especially if you have three or four.

A good way to get back on top of what you don’t need is to cancel your cards and order new ones to force a reset on all those commitments.

Use your tax

The average Australian pays more than $1,000,000 in tax during their working life.

Every Australian should be using their tax to help fund the cost of their investments, and the biggest tax deduction available is depreciation with 100 per cent of the cost of a new home capable of being depreciated against our income.

Look at your influences

It could make a big difference to spend time with like-minded people who aspire to do well in life.

The theory is that you will be as successful as the average of the 10 people with whom you spend the most time.

There is no time like the present

If you’re fortunate enough to be able to invest in something today, do it.

I’m yet to meet anyone who tells me they wish they bought less property or waited longer. I don’t have enough fingers and toes for the opposite!

Compound growth

There are just two types of people in the world - those who benefit from compound growth and those who get penalised by it.

Compound growth is the secret sauce of investing, and it requires time. Real wealth is built by buying and holding, not buying and selling. That needs to be a core principle of your investment approach.