When it comes to property investment, the sheer variety of options can feel both exciting and overwhelming.
Getting to know over 25 different property investment property types, area, location, other determining factors - and aligning them each year to your portfolio, risk appetite, changing market conditions is daunting.
From classic single-family homes to modern co-living developments, each property type comes with its own mix of potential rewards, risks, and management requirements subject to each investor profile and investment market.
The key to success lies in matching the right property type with your investment strategy. Whether your focus is capital growth, cash flow, or creating positive social impact, understanding these options will help you make a confident and profitable decision.
In this guide, we’ll break down five popular property types before speaking with your Portfolio Advisor on what this means for your
strategy:
1. Single-Key Properties: The Reliable Classic
If property investing had a “comfort food” equivalent, the single-key property would be it. These are your standard standalone houses that are leased to one tenant or a single household under one rental agreement.
Favourable qualities:
-
Broader market appeal: Families, singles, and couples alike seek these homes, making tenant demand consistent in most
areas.
-
Simple management: One lease, one tenant, one set of bills, allowing it to be fairly straightforward when it comes to
investing.
-
Capital growth potential: Particularly in high-demand suburbs or regions, the value of these properties can grow steadily
over the years.
Things to keep in mind:
- Rental yields may be modest compared to higher-yield property types.
- Vacancy periods can have a more noticeable impact since you have just one income stream.
2. Dual-Key Properties: Double the Income, One Title
Dual-key properties feature two self-contained living spaces under one roof or on one title, think a main residence and a smaller “granny flat” with a separate entrance.
Favourable qualities:
-
Two rental streams: More income potential without buying two separate properties.
-
Reduced vacancy risk: Even if one tenant moves out, the other unit can still generate income.
-
Tax advantages: Potential and decent depreciation benefits exist on new build construction properties.
Things to keep in mind:
- Financing can sometimes be trickier, as not all lenders treat them like standard properties and may carry different rules.
-
They may have slightly lower capital growth than a large single dwelling in the same location, depending on the marketplace and demand.
3. Rooming Houses: High Returns for Hands-On Investors
Rooming houses involve renting individual rooms out, often with shared facilities like kitchens or bathrooms, rather than the whole property to one tenant, this often reflects properties with 2 kitchen areas and multiple living areas and a larger floorplan to ensure this is laid out correctly.
Favourable qualities:
-
Exceptional yields: Multiple tenants paying separately can produce significantly higher returns than a standard established
or new build investment property.
-
Demand in certain markets: Ideal in areas this type of investment is a key purchase and key played in your overall
long-term investment strategy
Things to keep in mind:
-
More management required: Multiple tenants mean more administration, frequent tenant turnover, and potential maintenance
issues.
-
Compliance rules: Strict council and building code requirements often apply to building and providing these investments.
4. Co-Living Spaces: Modern Community Living
Co-living is a newer trend designed for younger renters and urban professionals. Tenants have their own private bedroom but share common spaces like kitchens, living areas, or coworking zones.
Favourable qualities:
-
Urban demand: Popular in key centres where housing is expensive and people value community living.
-
Consistent income: Properties can be quickly filled thanks to the affordability factor.
-
Higher yields than standard rentals: Multiple tenants sharing one property often generate better returns.
Things to keep in mind:
-
Tenant turnover can be higher than in traditional rentals.
-
Management companies specialising in co-living can be valuable but come at a higher cost naturally.
5. NDIS Properties: Purpose with Profit
NDIS properties are a popular target, they are built or adapted for Specialist Disability Accommodation (SDA) under Australia’s National Disability Insurance Scheme. They’re designed for people with disabilities and funded by the government.
Favourable qualities:
-
Social impact: You’re providing much-needed housing for people with disabilities.
-
Strong returns: Government funding often means above-average rental yields which may support a healthy growing portfolio.
Things to keep in mind:
-
Upfront costs are often higher due to compliance and specialist fit-outs.
-
You must work with NDIS-registered providers to ensure ongoing compliance and tenant placement.
Which Property Type Should You Choose?
The “right” property type comes down to your investment objectives, the application of the correct debt structure and lending strategy applied consistently over the life of your portfolio and in line with property types, your risk appetite, and your overall exit goal.
No matter the path, aligning your property choice with your strategy and seeking expert advice before you commit will ultimately give you
the strongest chance to achieve genuine, long-term success.
Even with knowledge across each property option Property investment shouldn't be treated as a
one-size-fits-all.
Whether you lean towards a single-key property or an innovative co-living development, clarity as to how they affect your portfolio goals, growth rate and how they affect or set you up for your next property will be the compass guiding your decision.
As the market evolves, flexibility and informed decision-making will remain your most valuable assets.
Confide in a team set up to plan and deliver for and with you. Contact the team at Ramsey today on 1300 001 215.