Island 3 of 6
Residential Investment Property
Use the bank's money to buy an asset that grows in value and builds your future.
What this island is about
The total value of Australia's residential dwellings reached $12.3 trillion in the December quarter 2025 - rising $384.8 billion in a single quarter and more than doubling over the past decade. This is the largest single asset class in Australia by a significant margin. The national mean dwelling price has reached $1.07 million. Western Australia recorded 16.8% annual growth in 2025, the fastest in the country. The market has recorded 13 consecutive quarters of growth since September 2022.
Where to start
- 1
Attend three open inspections for investment properties
Don't think about buying yet. Simply observe. Ask the agent: - What rent would this property achieve? - Who typically rents here? - How long has it been on the market? - What are the ongoing costs? Seeing real properties helps turn an abstract idea into something tangible.
- 2
Call a mortgage broker (not a bank) and ask what your current borrowing capacity is. You may be surprised.
Campfire Conversation
The book gave you their story. These questions continue it.
- What was the first property you ever bought and what do you remember about signing the contract?
- How did you decide where to buy, and would you make the same call today?
- Was there a property you almost bought but didn't? Do you ever wonder about it?
- What's the hardest lesson property has taught you?
- If I was buying my first place tomorrow, what would you tell me to look for?
Download the Residential Investment Property checklist
A printable one-page checklist with the five first steps for this island. Save it, share it, or take it to your next family conversation.
- 1Compare median prices and rental yields in three suburbs
- 2Calculate the total cost of buying, holding and selling
- 3Check your borrowing capacity and pre-approval options
- 4Understand the difference between land value and building value
- 5List the lifestyle and investment trade-offs for each location
The book that turns lessons into a legacy
The Archipelago teaches the thinking. The Six Islands book is where a parent writes the story behind the money: the mistakes, the wins, and what they want their child to remember.