When big decisions come along, do you follow your head or your heart? Here’s how you’ll know whether a property will make for a good investment.
We meet a lot of people who like the idea of investing in property but aren’t sure if it’s the right move for them. They’ve got some savings. They’re watching the market. They’re listening to advice from friends, podcasts, or TikTok.
But when it comes to pulling the trigger, they get stuck.
“Am I being smart about this or just following the crowd?”
“Is now the right time?”
“What if I get it wrong?”
Valid questions. Because unlike buying your own home, investing in property is purely strategic. That’s where it helps to distinguish between your emotional and practical decision-making senses: something we call the Head vs Heart dilemma.
The Real Question: Are You Investing with Your Head or Heart?
Everyone has a natural decision-making style. Some lead with gut instinct. Others need to research every angle. Many do a bit of both but still end up defaulting to either logic or feeling when it really counts.
The Head Investor: This is the logical thinker. The one who uses practical factor to make their decision.
- Numbers, growth, and rental yield
- Vacancy rates and rental demand
- Infrastructure and employment in the area
- Low maintenance and strong resale potential
A head-led investor is looking at the performance of the property, not how it makes them feel.
The Heart Investor: This is someone who finds a property they like and wants to believe it’ll be a good investment.
- It’s near the beach
- It reminds them of their hometown
- They “just have a good feeling about it”
- They picture themselves spending weekends there
They may not run the numbers as hard, because emotionally, they’re already sold.
It’s not wrong to feel excited about an investment, but if the numbers don’t work, the property doesn’t work.
The Dunning-Kruger Trap: A Little Knowledge Can Be Dangerous
We see this a lot. Investors who’ve picked up bits and pieces of property knowledge from podcasts, blogs, or friends, and now feel confident enough to go it alone.
But there’s a catch. According to the Dunning-Kruger effect, people with limited expertise often overestimate their ability. Meanwhile, more experienced investors tend to be more cautious because they know what can go wrong.
When investing in property, confidence without context can cost you.
The Real Question: Is Property the Right Investment for You?
Before you look at suburbs or floorplans, step back and ask:
“Is this the right move for my money and my goals?”
It’s easy to fall in love with the idea of property investing: passive income, long-term growth, building wealth. But the reality? Buying a property is not passive. It takes time, research, management and a clear strategy. Use the table below to help uncover whether the property you’re thinking of buying makes for a good investment.
Property Investment Decision Checklist
Take a moment to think about the property you want to invest in against the checklist, adding up your points for each category at the end. If most of your ticks are in the “head” column, you’re likely making a strong investment decision. If you’ve got too many ticks in the “heart” column – press pause and reassess.
Two Common Scenarios We See
Scenario 1: The Emotional Buy
- Cottage by the sea
- Quiet village, lots of charm
- Open fire, thatched roof – a character property
Sounds ideal but it’s not near employment hubs, has limited rental demand, and high maintenance. Investment score: low.
Scenario 2: The Strategic Buy
- Inner-city apartment, low maintenance build
- Close to public transport, universities, and major employers
- High rental demand and consistent yield
May not be somewhere you’d live yourself, but it performs. Investment score: high.
Investing in Property: Lead with the Head, Check in with the Heart
The best property investors listen to their instincts, but they don’t follow them blindly either.
They gather the right data. They ask smart questions. They build a plan, run the numbers, and keep their personal preferences in check.
When you’ve aligned your financial goals with timing and your personal vision, you’ll be closer to being able to decide whether to invest in a property.
And if you need help running the numbers or weighing your options – talk to someone who’s been through it before. You don’t need to guess your way through a six-figure decision.
At APW Group, we’ve been helping expats build up winning property portfolios and buy their dream homes for over 30 years now.
Get in touch if you’d like to discuss your situation with one of our experts.
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