The affordability crunch has changed the property investment landscape
In 2025, with sky-high property prices, elevated interest rates and rising living costs, the standard real estate investment model has cracked under pressure and a new approach is required.
Engineering a property portfolio with a positive cash flow requires more than a robotic approach to investment. (Image source: Shutterstock.com)
In previous years, property investors could afford to chase capital gains at the expense of yield.
It was a time when house prices, while steadily rising, still bore some resemblance to average incomes and interest rates were low enough to make holding costs manageable.
But that era is over.
Australia’s housing market has changed fundamentally, and so too must the strategy of those who invest in it.
Welcome to the rise of yield-first investing.
