When it comes to property investment, the difference between success and regret can be one thing: whether you’re buying strategically or getting sold.

Photo Source: Google Maps (The above photo is the actual substation from the location)

Every week, our acquisition team receives dozens of so-called “great investment opportunities.” Slick brochures, free bonuses, turnkey promises, rental guarantees—you name it, we’ve seen it. And 90% of them don’t pass our first layer of due diligence assessment.

Here’s a recent example that highlights exactly why we do the work, and why you, as an investor, need someone who works for you, not the sale.

Case study: The Pitch – Sizzle served hot

A professional 7-page marketing brochure landed in our team’s inbox today. It features glossy images, polished language, and a glowing summary of a “boutique infill” project with just eight exclusive homes. However, “don’t worry; we can get more once these are sold.”

Here’s an indicative example of the types of sales pitches offered:

• 3-bed house and land package from $579K  (307 +/- SQM Land | 123 +/- SQM House)
• 4-bed house and land package from $589K to $632K (307 – 329 SQM Land | 159 +/- SQM House)
• Free investor pack bonuses
• Rental guarantees to sweeten the deal
• Location benefits like “affordable housing” and “strong rental demand”

It all looked shiny. Professional. Limited supply. Urgency. Incentives.

On the surface, it seemed like an opportunity. But within minutes, our team declined it. Here’s why.

Step one: Look past the language

Let’s unpack some of the key claims in the brochure, using real data and our research methodology.

1. Asset Value vs Market Position

These properties are being sold off plan between (+/-) $579k and $632k, for builds ranging from 123–159 sqm on 307–335 sqm lots.

Compare that to recent median market values in the area:

• Lower Quartile: $405,000
• Median: $458,125
• Upper Quartile: $513,750

So, these “affordable” properties are being marketed at 25–40% above the upper quartile value. That’s not buying on market value; that’s paying a significant premium.

Reference: CoreLogic–May 2025

Recent sales in the area:

• A newer 3-bed home on a larger block sold for $530,000.
• 4-bed homes on much larger land 571–719 sqm blocks sold for between $334,000 and $585,000, which were well-established properties.

Why pay more for less? Especially in a suburb where land size is a key value factor.

Step two: Rental “Guarantees” and overcooked appraisals

We’ve seen this movie before.

The rental appraisal provided with the brochure listed top-end rental estimates, but there was no evidence that they could be achieved in current conditions.

The figures were inflated when we reviewed comparable rental listings and recent leases.

Rental guarantees can look attractive, but they are more of a sales tactic to eliminate an investor’s fear. However, it often masks soft rental demand or high investor saturation. Worse, they are costly, reduce returns, and expire. With Australia in a housing crisis, you should not need a rental guarantee to underpin your investment if the location is correct.

Step three: Location red flags

We cross-check every suburb with our internal location matrix, a proprietary tool that filters demographics, infrastructure, market trends, and liveability factors.

Here’s what stood out immediately in this case:

Rental saturation:

• 54% of the suburb’s dwellings are rentals
• Our benchmark maximum is 30% for long-term capital growth.
• Translation: This is a tenant-heavy area. More rental stock equals more competition, meaning lower yield potential and lower resale demand.

Unemployment rate:

• 10.5% compared to a state average of around 5%.
• This affects tenant quality, rental stability, and long-term viability.

Those two out of all the stats we assess alone should be deal-breakers for any serious investor.

Reference: Census 2021

Step four: What they didn’t show you

The real clincher came from a basic site visual analysis, utilising up-to-date satellite images of the location. Our team typically start with this before spending any time on location data.

Source: Nearmap–April 16, 2025

Here’s what the marketing brochure didn’t mention:

• A major high-voltage power substation sits next to the site.
• It’s directly adjacent to a multi-lane arterial road, bringing noise and visual pollution.
• The 8 “exclusive” homes? Two rows of four, side by side. Pure investor stock, low owner-occupiers’ percentage.

This isn’t “boutique.” It’s cookie-cutter infill, designed to move stock rather than deliver strategic investment outcomes.

In a renter-dominated location, you’d be hard-pressed to find a family or homeowner paying a premium to live next to an industrial site and a highway.

So, who will you sell to in 5–10 years? And what type of tenant would this location demographic be for your investment?

The bigger picture: Why this matters

Too often, investors are lured by what I call brochure buzz. The language, urgency, free pack, and guarantee are all designed to close the sale, not consider your investment’s future outcome.

But real investing isn’t about closing. It’s about holding, growing, and achieving outcomes aligned to a strategy.

The only way to do that is with:

• Real market data
• Local demographic insights
• Independent asset evaluation
• A strategy-first approach

We don’t “chase stock to sell.” We assess each opportunity through the lens of an investor’s strategy. That’s how we avoid bad buys and build long-term wealth.

Final thought: It’s not about being negative. It’s about being smart.

This isn’t about tearing down a development, as I am sure these will be suitable housing for people in the future. It’s about changing investors mindsets to see beyond the surface.

Would a first-time investor, emotionally drawn in by the slick presentation and urgency, have bought here? Possibly.

Would it have delivered the outcomes they hoped for? Unlikely.

This is why you need a professional in your corner, not someone selling to you, someone working for you. Someone who digs into the details, interprets the data, and tells you when something doesn’t stack up.

You deserve better than a sales pitch. You deserve a strategy, a plan, and the confidence that you’re buying assets that work hard for your future, not someone making the wrong, costly decision.

For further insights on property investment, avoiding common pitfalls and staying informed about market conditions. reach out to John Tsoulos or Frank Pennisi at IFP Advisory on (08) 8423 6176. Your investment success depends on making informed, strategic decisions.

IFP Advisory is an Accredited ASPIRE Property Advisor Network advisor and all professionals are Qualified Property Investment Advisors (QPIA). Property investing is about purchasing a property that aligns with your goals and investment strategy. You should never be sold an investment. Know your numbers! If you invest wisely and strategically, the Australian residential property market can be a rewarding venture.