Stephen Vick — My approach to investing and property advice

A guide by Stephen Garry Vick, former World Kickboxing Champion and Property Investment Specialist, to strategies that Australian investors can use to build a property portfolio.

In my role at National Property Advisory, I assist new entrants break into the property market and work with seasoned investors seeking to take their portfolio to the next level. Over the years, I’ve developed a set of principles that I use to guide clients — principles that come from experience, research, and knowing that every investor has different goals and needs.

My approach to property investment advice is to first truly understand my client. This demands an almost psychologist-like insight and candour, delving into clients' financial situations, investment experiences, fears, biases, goals, risk tolerances, values, and the things that are truly important to them. In my experience, failing to consider these factors often leads to undermined strategies, significant financial losses, or even the breakdown of relationship.

Understanding who you are as an investor—or as part of an investing partnership—is key to building a strong property strategy. Beyond having a well-thought-out plan (which I’ll cover more in the next section), successful property investing requires a solid grasp of financial basics, a vigorous research and due diligence process, consistent market engagement, and regular assessment of your strategy.

Additionally, all investors will need help from professionals to put their strategy into action. It’s essential to work with advisors who communicate clearly and at your level of understanding, so you can make informed, confident decisions that can withstand personal or economic adversity.

I have written a number of articles that provide advice and guidance in these areas, as I think it is essential for both new and experienced investors to have access to as much information and insight as possible.

With over 30 years’ experience in investment advisory, I can affirm that engaged and informed investors not only achieve superior outcomes, but also make rewarding clients. 

Where do I start with a property investment strategy - thoughts from Stephen Vick?

The first step is understanding your financial position, clarifying your goals, and seeing where you currently stand in relation to them. For many, this process can be surprising—sometimes even a wake-up call—but it’s also a powerful motivator. You may even find that reaching your goals doesn’t require as much risk as you thought.

Setting goals doesn’t have to be daunting. It’s fine if your initial goal is simply to buy your first investment property. Or, if you prefer, map out a bigger vision for achieving your best life and legacy. Goals will change over time, and that’s perfectly normal; what matters is giving it some thought and taking that first step.

What type of property venture do I take on?

Aligning your finances and personal situation is key to choosing the right type of property for your portfolio. One of the first questions to ask yourself is, "What kind of property investor am I?" This decision will shape the type of venture you take on. Are you a Developer, a Flipper, or a Passive Investor?

If you have a high tolerance for risk, plenty of capital, ambitious goals, good mentors, and can dedicate the time, then a more hands-on project like a renovation, a small unit complex, or land development might suit you.

But if you’re focussed on a career, have some capital limitations, prefer lower stress, and don’t have strong connections in the construction industry, then a long-term passive investment portfolio may be a better fit.

How much do I spend?

Once you’ve decided on your investment venture, the next step is figuring out your budget for the property or project. Most people start by speaking with a bank or mortgage broker. Make sure to discuss any upcoming large expenses, like holidays, a new car or family events, and make a plan to handle potential changes in your job or personal circumstances.

If you’re taking on a renovation or development project, a feasibility assessment should be performed and extra capital set aside for project delays, material increases, labour increases and other risk factors.

Just because you’re approved for a certain loan amount doesn’t mean you need to spend it all on a property; think of it as a starting point within your overall strategy. Borrowing power can vary a lot between lenders, so having a knowledgeable mortgage broker on your side is a real asset.

After reviewing your options, consider what you’re comfortable spending and set aside cash or credit buffers. Predictable cash flow is especially important for passive investors, as budget constraints can quickly create stress. Tight cash flow can even force you to sell an investment prematurely, often at a loss. Planning for this will help protect your long-term goals.

What type of property is right for me?

Once you have a clear understanding of your budget and chosen venture, it’s time to think about yield vs growth. Yield is the income your property generates, while growth is how much the property’s value increases over time. These are inevitably a trade-off: higher growth properties usually have lower yields, and vice versa. For long-term investors, growth-focused properties tend to deliver stronger overall returns.

As a passive investor, aim for a yield that supports your strategy without going too high, as a higher yield often comes at the expense of growth potential. This balance will help you narrow down the types of properties that suit your goals, whether it’s residential, commercial, industrial, or a specific property type like a house, unit or townhouse.

In the end, understanding this trade-off between yield, growth, and your budget is essential for shaping a strategy that works for you and choosing the right property type to match.

What else should be included in my strategy?

There are many tools that can strengthen your investment strategy based on your specific situation. These can include smart funding and debt reduction tactics, tax strategies, acquisition methods, risk management plans and rental management strategies.

Getting advice on these areas doesn’t have to be costly, but the impact of skipping professional advice can be significant, even life-changing — for better or worse.

Once your core strategy is in place and you know what kind of property you’re after, take time to research locations, perform your due diligence, and plan ahead with a rental management strategy if leasing is part of your goal. We will cover these things in more detail below.

Where should I invest?

Location is one of the main factors that drive property growth, but a crucial lesson for new (and even seasoned) investors is that finding an investment property isn’t like choosing a family home. What may look like an ideal spot to you might not attract renters, might not fit your financial goals, or could offer limited growth potential. Often, the best investment opportunities are in places—or even states—you wouldn’t necessarily choose to live yourself.

To understand the impact of growth rates, let’s assume you invest $500,000 in a property and keep it for 20 years. With just a 2% difference in growth rates—let’s say one property grows at 5% per annum and another at 7%—the difference in capital growth between the two properties is more than $600,000. Sacrificing even a small amount of growth by restricting your investment location could end up costing you hundreds of thousands—or even millions—in lost profits.

When researching specific locations, look for community essentials like employment opportunities, transport, schools, hospitals, shopping, and lifestyle amenities. However, remember that while population growth and infrastructure spending help drive demand, they don’t guarantee price increases. The basic rule of supply and demand still applies—prices rise when demand is high, and supply is limited.

What is meant by property due diligence?

There are a number of components involved in property due diligence, depending on the property type and stage of completion. 

Building - If you’re building or buying off-the-plan, it’s essential to investigate the developer and builder. With high pressure on the construction industry, risks like delays and company bankruptcies are likely to increase in the coming years. Due diligence in this area might include checking credit reports, court records and key ASIC documents, as well as understanding the builder or developer’s reputation and track record.

A knowledgeable agent or industry professional can assist with this research. Properties closer to completion generally carry lower risk, and there are additional strategies to help reduce risks of involved in buying off-the-plan.

Financial - Accurately calculating holding costs is critical. This can involve assessing repair needs through building and pre-settlement inspections, estimating mortgage payments, reviewing body corporate fees, depreciation schedules, rental income estimates, insurance, council rates, vacancy rates, property management fees, ongoing maintenance and other incidentals.

Ideally, perform a sensitivity analysis to see how your holding costs might change with fluctuations in interest rates, rental income and vacancy rates.

Location – Beyond the location research mentioned earlier, additional due diligence may include checking historic suburb growth rates, income demographics, flood and flight path maps, lifestyle and affluence scores, rezoning proposals, and any relevant development applications.

Legal – Along with hiring a property conveyancer for standard searches, it’s wise to get contract advice. Make sure you understand any property use restrictions, timelines for acquisition milestones, and sunset terms. Additionally, there may be aspects of the community titles scheme that don’t align with your investment strategy, so it’s important to review these closely.

A Buyer’s Agent or Advocate that specialises in investment properties, such as National Property Advisory, should be able to assist you with market research and due diligence.

The current state of the property market in Australia for investors 

As 2024 comes to an end, the latest data suggests that investors are playing an important role in shaping the overall state and direction of the property market in Australia. 

For instance, investors have made a significant contribution to an increase in the total value of the Australian residential property market, which is now currently valued at $11 trillion, with CoreLogic reporting that investors made up 38.6% of new home loans in the September quarter, the highest since 2017.

Analysts believe that this high level of investor activity is the result of investors seeing opportunities for capital gains, and a competitive rental market which has resulted in yield growth. 

However, these are national figures, and the property market in Australia is actually quite fractured; different states and cities can perform very differently over the same period. Savvy investors will likely focus on areas with strong prospects for long-term growth and, in some cases, government incentives that encourage investment in the sector.

Other factors likely to impact on the market

Interest rate cuts, greater access to credit, and continued high immigration levels are expected to keep demand strong through 2025. At the same time, housing supply challenges across the country have been well documented, and high demand with limited supply naturally drives up property values — a promising outlook for investors.

Each state government is now acutely aware of the housing supply crisis, but any measures they implement will take time to have an impact. While policy changes should benefit communities, they will also open up new opportunities for investors, which I cover on a state-by-state basis below.

In short, with major shifts expected in Australia’s property, financial and political landscapes, the future looks bright and property investment remains a compelling way for Australians to grow their wealth.

For more in-depth discussions on these trends, visit my personal website, Stephen Vick, where I explore these topics in detail across a series of accessible blogs.

Potential growth markets in 2025

Looking ahead to 2025, considering factors like housing supply and demand, infrastructure development, vacancy rates and population growth, I believe three cities stand out as high-growth prospects for Australian property investors: Brisbane, Melbourne, and Perth.

Naturally, within each of these cities, there will be areas to avoid as well as neighbourhoods that will show particularly strong potential.

Why invest in property in Brisbane?

Brisbane’s median property prices are expected to keep growing throughout 2025. As Australia’s fastest-growing city, this momentum isn’t slowing down. Migration from southern states, which started during COVID and has continued, along with Brisbane’s relatively affordable housing compared to Sydney, has kept demand high.

Brisbane is also experiencing a wave of major infrastructure projects—the largest since the end of World War II—including the airport expansion, Cross-River Rail, and the Queen’s Wharf and Casino precinct, just to name a few. These developments will create jobs, improve amenities and increase demand for housing. However, they’re also likely to keep pressure on a struggling construction industry, especially in Brisbane’s inner suburbs, where supply issues persist.

The 2032 Olympics will add even more infrastructure, meaning demand for Brisbane property isn’t expected to cool any time soon, with many suburbs likely becoming even more attractive after the Games. Those who owned property in Sydney before the 2000 Olympics may recall the significant price gains enjoyed in the 5 years leading up to the event—a pattern we could see again in Brisbane.

For investors seeking capital growth over the next decade, Brisbane’s high demand and limited supply make it a city worth serious consideration, with both property values and rents expected to rise significantly in the years to come.

Why invest in property in Melbourne?

While property prices in cities like Sydney and Brisbane have surged in recent years, Melbourne has lagged. The city experienced the largest COVID impact and is still recovering economically and politically.

However, Melbourne has a strong track record, having been ranked the world’s most liveable city for seven consecutive years through to 2017 by the EIU’s Global Liveability Index, and it has a history of solid property growth.

Known for its cultural attractions, parks, restaurants and overall lifestyle appeal, Melbourne also boasts a diverse economy with key sectors in finance, technology, healthcare, education and retail. Currently ranked fourth on the Global Liveability Index, there are many reasons to expect a rebound in Melbourne’s property market.

Recent data from the Australian Bureau of Statistics and the Centre for Population indicates that overseas migration to Australia will exceed 600,000 over the next 12 months, with the majority of new arrivals expected to settle in Victoria.

The Victorian government has just announced substantial stamp duty concessions for new, off-the-plan apartments and townhouses, offering savings of around $28,000 on a $620,000 property. This move aims to make property ownership more accessible for first-home buyers and investors alike.

As in all cities, some areas will benefit from government policies more than others. Overall, however, Melbourne currently appears undervalued, with a lot of upside, making it an interesting option for investors considering long-term growth.

Why invest in property in Perth?

Perth boasts strong business, technology and property sectors, with the added advantage of a relatively low entry price. For investors with limited budgets, Perth can be an appealing option.

Western Australia’s economy is solid, partly due to renewed mining activity in resources like iron ore, lithium, and rare earth minerals. As Australia moves toward renewable energy, Western Australia is well-positioned with ample supplies of lithium, nickel and cobalt. The state also holds some of Australia’s largest uranium deposits, which could become a major opportunity if there’s a shift in government policy towards nuclear energy. 

With these surging industries come new employment opportunities, which drive demand for rental properties. High demand, combined with rising building costs and construction delays, has resulted in a rental shortage and low vacancy rates in Perth. This strong competition for rentals has led to high yields, benefiting investors.

The Western Australian government is currently offering stamp duty concessions of up to 75% to buyers of new apartments purchased off the plan.

Looking ahead, a steady flow of new workers is likely to keep demand strong, presenting potential for both rental yield and capital growth in Perth.

Overcoming Challenges

Successful property investing does not happen straight away. It takes time to learn about the market, and requires resilience to bounce back from the inevitable setbacks — of which I have had more than my fair share.

As I outline on my Stephen Vick website, my journey as a property investor has not been a conventional one, but it has nevertheless been invaluable. I left school in grade 11 to concentrate on martial arts, going on to win multiple state and national titles in Taekwondo. 

I then became a professional kickboxer, and achieved significant success, including winning state, national, South Pacific, Commonwealth and Intercontinental titles. At the age of 25, I was ranked number 1 across all kickboxing sanctioning bodies, and became the Super-Welterweight World Champion in November 1994.

You can read more about my kickboxing career — including what Joe Rogan had to say about me — at my personal website Stephen Vick.

The day I won the World Title in kickboxing, I made the decision to retire and immediately stepped into the world of finance and property. I pursued a Diploma in Financial Planning, a Diploma in Finance and Mortgage Broking, and eventually completed a Bachelor of Business with majors in Banking, Finance and Accounting.

My experience as a professional athlete has been invaluable in my investing career. In sports, moments of victory are exhilarating, but fleeting compared to the countless challenges and setbacks endured along the way. Success demands accepting setbacks, learning from every mistake, and keeping focused on your goals.

Kickboxing taught me that if I wanted to succeed, it was ultimately up to me. This meant taking advice but always questioning exactly how it related to me. Being a competent full-contact fighter requires putting together a complex puzzle—strategising, refining skills and aligning determination with your strengths and weaknesses.

Personal advice and guidance for investing in property from Stephen Vick

Property investment is no different. Like kickboxing, investing is layered with complexities that only reveal themselves with experience. It’s about navigating complexities, crafting a strategy that aligns with your personal goals, and understanding how each piece fits into your larger picture.

This is what I love about working with clients. I take my knowledge of property and finance and tailor it to each individual’s unique situation, helping them understand how all the pieces fit together.

Over the years, I’ve had the privilege of guiding hundreds, if not thousands, of people through the nuances of finance and property investment, and I still feel a thrill with every success story. Helping clients see the big picture and empowering them to make confident decisions is what keeps me passionate about what I do.

To read more about our services, or to make an appointment to discuss your property investment goals, check out my website Stephen Vick