Buying an investment property without falling for the listing

Stop buying on yield alone

A high-yield property in a thinning market is a slow loss disguised as a fast win. The four numbers that actually matter are gross yield, void risk, capital growth outlook and exit liquidity.

Stress-test before you sign

Run the property at +3% interest rates and 8 weeks of voids per year. If the numbers still hold, you are looking at a real investment. If they don't, you are looking at a speculation.

The Boardroom Edition runs exactly this stress test as part of its economist module.

Tenant profile is a hidden variable

A three-bed near a hospital, a studio near a university, a family home near a good primary — each attracts a different tenant with a different void pattern and a different wear-and-tear profile. Pick your tenant before you pick your property.

Exit before entry

The best investors decide how they will sell before they buy. If the exit market for that unit type is thin, the yield needs to compensate for the illiquidity — or the property is not an investment, it is a trap.