Planning the Perfect Property Portfolio

What’s your idea of “living the dream”?  

Owning your own home debt-free? Or perhaps retiring early as a wealthy property investor?

Today we’ll explain how the two can go hand-in-hand.

Whether you’re a first-timer or a property hotshot, property investment can help you live the dream!

Some of our earlier blog posts have given our top tips for choosing your first investment property, and for buying rental property generally. 

This post is our guide to building the ideal property portfolio.

Read on for top property investment tips from our experts!

Getting a head start on perfecting your property portfolio

Perfect Property Portfolio

When building a property portfolio, we recommend you begin with these steps.

Survey your situation

First, take stock of your situation and do some research. Consider the financials, including your:

  • current income (employment and investments) 
  • ability to repay loans 
  • estimated operating expenses (repairs, maintenance, rates, tax, insurance, management fees etc.)
  • tax situation and the impact of property investment
  • borrowing capacity (ask your lender)

Know what you want

Next, consider your goals — what do you want to achieve, and by when?

  1. Consider whether you’re investing to reduce tax, build wealth for retirement or increase income.

This will help you set your investment strategy. You may want to:

  • positively gear (maximise profit) or
  • negatively gear (make a short-term loss) and/or
  • achieve long-term capital growth

If you’re a high income earner, negative gearing can reduce tax. However many investors positively gear for cash-flow, and to service loans.

  1. Consider what risk level you can tolerate. 

This will depend on your age, personality, and circumstances.  

Investors close to retirement are generally most risk averse – they can’t afford big losses. Cashed-up buyers can accept more risks than those with high debt levels.

  1. Decide your strategy. Will you be an involved or passive investor? What type of portfolio will you build, and how long will you hold it?

Hands off investors have more options — they can invest overseas or interstate. 

Involved investors have more control – they can keep a closer eye on their properties. 

You may buy different properties, depending on whether you will hold them short, medium or long term.

IMPORTANT NOTE: these questions are best considered after consulting a qualified financial advisor or accountant. 

Do your homework

Next, research the market, economic conditions and relevant external factors. 


Seek expert local advice in areas you are considering investing in, to identify property types that tenants want, and what rent you can expect. The experienced property managers at We Love Rentals are happy to share their local knowledge!

Diversify and conquer

Our best tip when it comes to property investment is: diversify! 

Investing in different property types and locations helps balance your portfolio, reduce risk, and improve overall returns. 

This is because not all areas experience strong rental/sales growth at the same time, and capital growth varies for different property types (houses often gain more than units).

Consult an expert for a strategy that suits your circumstances.

Perfecting property portfolio management with We Love Rentals 

Wherever you’re investing, your properties must be managed effectively to hold their value! 

At We Love Rentals, we treat each property as if it were our own. One dedicated property manager manages your properties with care and diligence.

We thoroughly vet potential tenants via three industry-recognised databases, giving you peace of mind. 

Let us take the stress out of managing your property investments, with our flat-fee, all-inclusive service. Call our friendly, family-run team today on 6254 6300 or go online to learn more!

I am the licensee of We Love Rentals and provide support to the team whenever needed. I began my real estate career over two decades years ago. While I loved seeing people achieve their dream of a new home for their family, I kept thinking that there had to be a better way of doing real estate – one with respect for the long term benefit of the client and one that focuses on customer satisfaction.