Revealing the Biggest Myths Surrounding Property Investment
Property investment is surrounded by myths and misconceptions, often leading to confusion, especially for first-time investors. Some of these false beliefs can prevent investors from making informed decisions and maximising opportunities in the market.
Here, we debunk some of the biggest property investment myths to help you separate fact from fiction.
Myth #1: Off-Market Properties Are Always Great Deals
A common misconception is that off-market properties are golden opportunities simply because they are exclusive. Many Australian buyers believe that off-market listings must be better investments since they aren’t publicly advertised. However, exclusivity means nothing if the property itself is flawed.
In reality, off-market properties are often kept off the market for undesirable reasons, such as:
Structural issues or major repairs needed
Poor location (e.g. near noisy roads or high-crime areas)
Strata or sinking fund concerns in apartment buildings
Legal or title complications
At Providence, our team actively identifies off-market opportunities, but we reject over 90% of them because they don’t meet our investment standards. If a property is truly a great investment, it will eventually be listed on the market where it can attract more buyers.
While some off-market properties can present genuine opportunities, such as those from motivated sellers (e.g. financial distress or divorce) this doesn’t automatically make them good deals. Investors should approach off-markets with caution and look beyond exclusivity when assessing value.
Myth #2: Units Are Always a Bad Investment
Another frustrating myth is that units (apartments) are a poor investment choice. This belief is often fuelled by high-profile media stories about problematic developments, such as Opal Tower and Green Square in Sydney. While it’s true that some unit developments have faced serious issues, this doesn’t mean that all apartments are bad investments.
In fact, with Australia’s strong population growth and migration trends, demand for affordable housing options is increasing. Many people can’t afford houses, which means well-located units in prime areas are becoming an essential part of the property market.
The key to successful unit investment is selecting:
✔️ Quality developments with reputable builders
✔️ Low-density buildings rather than high-rise towers
✔️ Locations with strong demand for rentals and owner-occupiers
When chosen wisely, units can offer strong rental yields and provide an accessible entry point for investors looking to break into high-demand suburbs.
Myth #3: Property Always Doubles in Value Every Seven Years
The idea that property values double every seven years is one of the biggest myths in real estate. While Australia’s property market has experienced strong long-term growth, assuming that all properties will double in value within a set timeframe is overly simplistic.
Property prices are influenced by:
Interest rates and lending policies
Economic cycles and inflation
Supply and demand in local markets
Government policies and infrastructure projects
There is no guaranteed formula for predicting when and by how much a property’s value will increase. Investors should focus on market conditions and adopt a long-term strategy rather than relying on misleading expectations of fixed growth cycles.
Understanding the Market Is Key to Smart Investing
The world of property investment is filled with myths and misconceptions that can lead to costly mistakes. By understanding the real dynamics of the market, investors can:
✔️ Avoid common traps like the off-market property hype
✔️ Recognise the real value in units and apartments
✔️ Take a realistic, data-driven approach to property appreciation
At Providence, we provide expert insights and strategies to help investors navigate the market with confidence. Contact us today to make informed property investment decisions.
