When buying an Investment Property, does it really matter if you buy a big 4-bedroom home on its own block of land compared to a 3-bedroom terrace?

Well… let’s bring it back to why are you buying this Investment Property in the first place:

  1. Growth; and
  2. Yield.

As long as the property you are purchasing is going to grow and you will receive a high rental yield (anywhere above 4.5%), you don’t need to worry about how big the property is.

There are always going to be tenants who are suited to the property type (that’s why they build different types of properties!):

  • 4 Bedroom Home: Family looking to have a ‘home’ for their children with a backyard for them to play in.
  • 2–3 Bedroom Terrace: Professional singles who spend more time at work than at home and don’t want any gardening maintenance, etc.

At the end of the day, it just comes back to purchasing in the right location and choosing a property that you can afford.

Anything growing in the market is better than nothing growing!