Key takeaways
Don’t gamble – property is about fundamentals, not chance.
Ignore false prophets – media forecasts are noise, focus on long-term fundamentals.
Do your due diligence – know what you’re buying and plan for risks.
Leverage compounding – time in the market beats timing the market.
Diversify wisely – own a few great properties, not many average ones.
Invest defensively – buffers, sensible debt, and insurance keep you safe.
Invest offensively – once safe, proactively grow equity and income.
Manage liquidity – always have an exit strategy and financial backup.
Respect costs – don’t be cheap, invest in quality advice and expertise.
Invest in yourself – knowledge is your greatest, most enduring asset.
Do you ever feel overwhelmed by all the mixed messages about property?
One “expert” says the market is booming. Another predicts a crash. Interest rates, inflation, population growth - it can all feel confusing.
And yet, some investors seem to consistently make money, cycle after cycle.
What do they know that most don’t?
They stick to a set of timeless principles. Rules that keep them safe in downturns and prosperous in booms.
I call them the Ten Commandments of Property Investing.
Follow these and you’ll avoid most of the mistakes that hold investors back.
1. Thou Shalt Not Gamble
Property is not a game of chance.
Winning investors look for suburbs and assets where the odds are stacked in their favour - areas with population growth, improving demographics, infrastructure investment, limited supply, and strong rental demand.
If you don’t know your edge, you’re speculating, not investing.
2. Thou Shalt Forsake The Advice Of False Prophets
Never try to outguess the market by following forecasts from the financial media or the latest investment guru.
Financial forecasts are little more than entertainment, and should never be part of your investment strategy.
And forget the click-bait headlines about “booms” and “busts” or Get-Rich-Quick schemes.
Real wealth is built by following fundamentals, not forecasts.
The media sells drama, not data.
Instead, follow a proven long-term strategy and think about where the housing markets are going to be in 10 years' time, not what's going to happen over the next few months.
3. Thou Shalt Do Thy Due Diligence
Only invest in what you understand. If you don't understand it, then don't invest.
What you don't know will cost you when investing. Due diligence is the process of gathering information to make informed investment decisions.
Start with a proven property investment strategy, and then make sure you understand the risks as well as the rewards of any investment you're about to make.
The best investors ask: what could go wrong? Then they plan for it before buying.
Note: I've often said, "Plan for your plan, not to go to plan."
4. Thou shalt compound returns
Albert Einstein declared compound growth the eighth wonder of the world … and for good reason. Compound growth is how the average person can attain extraordinary wealth.
It’s how lots of little things done right can grow into very big results during your lifetime.
Time in the market beats timing the market.
Property wealth is built slowly, through compounding rental returns and capital growth. Buy the right property, hold on, reinvest, and let the cycle of growth repeat. Compounding is how investors turn a single property into a multi-million dollar property portfolio.
Tip: Allowing compound interest to work for you now changes wealth from a question of IF to WHEN.
5. Thou Shalt Diversify, But Not Di-Worse-ify:
Don’t put all your eggs in one suburb or one city. Spread your portfolio across different markets and property types.
But remember, over-diversification is just “di-worse-ification.”
You don’t need dozens of properties; you need a handful of high-quality, investment-grade ones.
6. Thou Shalt Invest Defensively
Before you chase returns, make sure your downside is covered.
Your investment strategy must have built-in safeguards that manage risk exposure and control losses to an acceptable level under both normal conditions and worst-case scenarios.
- Also read:This week’s Australian Property Market Update – Latest Data, State by State September 9th 2025
- Also read:Melbourne property market forecast for 2026 | Is it a good time to invest in Melbourne?
- Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2025–26: Where Prices Are Headed After Three Rate Cuts.
- Also read:Sydney property market forecast for 2026. Is it a good time to invest in Sydney?
- Also read:Brisbane Property Market Forecast [2026] – What’s Ahead & Where to Invest
That means having financial buffers in place to buy you time, not over-leveraging, and insuring properly.
In property, survival is success. If you can ride out the downturns, the upturns will take care of themselves.
7. Thou Shalt Invest Offensively
At first glance, offensive investing might seem contrary to commandment # 6.
The truth is, they work together synergistically to form a complete and balanced investment strategy.
Stated another way, you must invest offensively to seek gains while you invest defensively to manage risk and control losses.
Either half of this equation without the other is an incomplete investment strategy.
In fact, offensive and defensive investing are flip-sides of the same coin. No investment strategy is complete without either half of the coin.
Once your downside is covered, you can go on the attack.
Buy properties you can add value to and then renovate, or undertake small property development strategically, and be proactive in creating equity and rental income, rather than just sitting back and hoping.
8. Thou Shalt Avoid Illiquidity
The reason liquidity is important is that the risk management tool of last resort (see Commandment #6) is to sell your property.
Of course, property is a reasonably illiquid asset, so think ahead.
Can you refinance if needed? Could you sell without taking a haircut?
The best investors always know how they’ll get out before they get in, and have a financial buffer in place to see them through the challenges the market will present.
9. Thou Shalt Respect, But Not Obsess About Expectations
Expenses are a cost of doing business.
I've seen people lose money because they refused to pay CGT and transaction costs necessary to sell an underperforming property.
I've also seen people miss out on great investment opportunities because of what they thought appeared to be an expensive Valuation on a good property.
I've also seen investors make poor decisions because they got their advice from the internet for free, rather than paying a professional property strategist.
Don’t mistake cost-cutting for smart investing.
A skilled property manager, tax strategist, property strategist and buyer’s agent is an investment, not an expense - provided they deliver more value than they cost.
10. Thou Shalt Invest in Thyself
Your knowledge is your greatest asset.
Property markets evolve, regulations change, and strategies shift.
Stay ahead by continually learning. Read widely, listen to experts, and surround yourself with people smarter than you.
That’s where Financial Mentor can help.
The best investment you can make is in yourself because nobody can ever take it away from you, and it will pay you dividends for the rest of your life.
The investor you become will determine the portfolio you build.
Some Final Thoughts
Property investing isn’t about luck. It’s about discipline.
It’s about following rules that keep you safe and set you up for growth.
Ignore them—and you risk learning the hard way. Follow them—and you’ll be on your way to building the kind of wealth most Australians only dream about.
