At est, Capital growth is the foundation of long-term wealth and financial security for investors. That’s why we only recommend properties in areas with a proven track record of strong, consistent performance, specifically, locations that have delivered an average annual capital growth rate of at least 6%+ over the past 10 to 15 years.

This long-term data gives us confidence that the growth is not a short-term spike but a trend supported by key fundamentals likely to continue. Areas with growth rates below 6% are typically excluded, as they suggest a lack of the drivers required for sustained capital appreciation.

Equally, markets that have experienced unusually high growth: such as 20% per annum over the past two years, may signal a peak. Investors entering such markets risk overpaying and facing slower growth in the years ahead, as the market corrects and reverts to more typical growth levels.

Our recommendations are based on in-depth research from trusted, independent sources like the Real Estate Institute, BIS Shrapnel, Residex, RP Data, and other industry authorities. This data-driven approach ensures each area meets our strict capital growth criteria before it is put forward to our clients.

In real estate, it’s often said that “Position, Position, Position” is the golden rule, highlighting location as the most critical factor in property investing. While location is undeniably important, at est we believe that successful investing demands a broader perspective. That’s why we’ve expanded the golden rule to include not just position, but also “People, People, People.”

Why? Because it’s people who drive demand. People choose where to live, where to rent, and where to buy. It’s population trends, not just geography, that ultimately define what becomes a ‘prime’ position. We focus heavily on demographic data, particularly population growth, because it's a key indicator of long-term housing demand. When more people move into an area, demand for housing rises. And when demand increases faster than supply, property prices and rental yields follow.

To identify high-growth areas, our research team analyses national data from the Australian Bureau of Statistics, as well as specialised population growth reports. We look for regions experiencing net population growth above 1.7% annually, as this threshold typically signals sustained housing demand, upward pressure on prices, and long-term rental viability.

This data-driven approach allows us to zero in on the suburbs and regions most likely to outperform. Often, these locations are found within Australia’s capital cities, but not always. The focus is on areas where both capital growth and rental returns can be strong, stable, and sustainable.

In short, the smartest investments aren’t based on location alone, they’re built on understanding the people behind the property market.

At est we believe that property prices are governed by the same fundamental economic principles that drive other markets, whether it’s shares on the stock exchange or coffee at the supermarket. The common denominator? Supply and demand.

When housing demand in an area exceeds supply, prices rise. Conversely, when supply outpaces demand, growth slows or even stalls. For property investors, recognising and acting on this imbalance is key to securing both capital growth and reliable rental returns.

One of the most effective tools for gauging this supply-demand dynamic is the residential vacancy rate. This metric represents the percentage of rental properties in a given area that are vacant and actively seeking tenants. It provides real-time insight into how well an area’s rental market is performing.

A vacancy rate of 3.0% is generally considered a “balanced” market, where supply and demand are roughly equal. Rates higher than this suggest oversupply, which can lead to longer vacancy periods, reduced rental income, and lower rental yields, ultimately increasing the cost of holding the investment.

For this reason, we only recommends investment properties in areas where the long-term vacancy rate is consistently below 1.2%. This threshold indicates strong tenant demand, low competition, and a greater likelihood of securing steady rental income and robust capital growth.

In addition, areas with tight vacancy rates are not only attractive to tenants, they often appeal to future owner-occupiers as well. The same lifestyle, employment, infrastructure, and community features that draw renters typically drive long-term buyer demand, reinforcing upward price pressure over time.

In short, a low vacancy rate isn’t just about better rental income, it’s one of the clearest indicators of future growth potential.

We recognise that one of the most influential factors driving demand in a particular area is the availability and quality of established infrastructure. Infrastructure isn’t just a convenience, it plays a direct role in making a property more desirable to tenants and ultimately drives both capital growth and rental returns.

We break infrastructure into two critical categories:

1. Transportation Links – This includes proximity to public transport options such as bus routes, train stations, major arterial roads, and freeway access. Tenants value easy, reliable commutes to work, education, and lifestyle hubs.
2. Local Amenities – These include access to schools, shopping centres, healthcare services, parks, and recreational facilities. Properties near these essential services are not only more liveable but also in higher rental demand.

That’s why every est recommendation must pass a strict infrastructure check, ensuring the surrounding area already features well-established transport and amenity networks. If a location has already met the earlier three benchmarks in our 8-Point Property Selection Criteria (like strong capital growth, low vacancy rates, and population growth), it will likely meet this criterion too. Still, we isolate infrastructure as a standalone requirement to guarantee it gets the attention it deserves.

This evaluation can start with something as simple as a drive through the area or reviewing a detailed local map, but we take it further. We also assess future infrastructure planning. If government agencies are investing in new roads, expanding public services, or rezoning for residential growth, it signals a strategic response to growing demand. Similarly, if the private sector is funding new shopping centres, business parks, or industrial precincts, it reflects long-term confidence in the area’s economic and population growth.

These developments create employment, enhance liveability, and attract even more people to the area, fueling a positive feedback loop of demand and future growth.

To ensure we capture both current and emerging infrastructure trends, our team conducts deep research using sources such as:

• State and local government urban planning reports
• Council websites and transport authority updates
• Local newspapers and community bulletins
• Industry research publications

Ultimately, our approach ensures that every property we recommend sits in a location where both today’s tenants and tomorrow’s buyers will want to live, supported by infrastructure that sustains value, drives demand, and fuels long-term growth.

While the first four components of our 8 Property Selection Criteria focus on identifying a high-growth area, the remaining four shift focus to the individual property itself. The first of these relates to price point, a factor that directly affects both rental demand and future resale potential.

At est, we often refer to the ideal property as a ‘bread and butter’ investment. This term refers to properties that sit comfortably within the reach of the average Australian, homes that people can realistically afford to rent and, later, to buy. These properties represent the core of the market, where the highest concentration of demand exists.

We use the Median Property Price, not the average, as our benchmark. The median is a more accurate reflection of the market, as it isn’t skewed by extremely high or low outliers. By definition, half of the properties in a suburb are priced above the median, and half below.

When clients ask whether they should invest in a property worth $850,000 or $1.2 million, our answer is always: it depends on the area. What matters more than the number itself is how that number compares to the local median.

At est, we advise clients to invest no more than ±15% from the median property price for the suburb. Why? Because this range allows investors to acquire an above-average property that remains accessible to the majority of the market. According to demand data, as illustrated in our bell curve model below:

buyer and renter demand peaks at or near the median, and gradually drops off as prices rise above or fall below it.

By targeting the ±15% range, you’re strategically positioning your investment in the market’s demand sweet spot:

• It’s not priced so high that only a small segment can afford it.
• It’s not so cheap that it compromises quality, yield, or tenant appeal.

Instead, it’s the type of property most Australians aspire to rent or own, giving you maximum flexibility when it’s time to lease or sell. This approach ensures your investment remains competitive, desirable, and insulated against shifts in market sentiment.

In short, selecting the right property at the right price, anchored to local market realities gives you a strong foundation for both capital growth and rental stability.

What makes property investing uniquely powerful is not just the potential for long-term capital growth, but also the ability to generate consistent, passive rental income. For many investors, this dual benefit is what makes real estate a cornerstone of wealth-building.

Rental income provides essential cash flow to help fund the holding costs of the property, service the mortgage, and eventually replace other income streams over time. The key metric used to measure this income is rental yield, which represents the annual rental income as a percentage of the property’s value.

For example, a property valued at $1,000,000 renting for $665 per week earns $34,580 annually. This results in a rental yield of 3.4%

Rental Yield = (Annual Rent ÷ Property Value) × 100

Rental yield serves two critical functions:

1. It allows investors to evaluate the cash flow performance of a property, i.e. how well it can support itself.
2. It offers insights into the capital growth dynamics of the area.

While it may seem natural to aim for the highest possible rental yield, this isn’t always in the investor’s best long-term interest. Based on our analysis at est, we've found a consistent inverse relationship between rental yield and capital growth:

• Areas with high rental yields (above 5%) often experience lower capital growth.
• Areas with low rental yields (below 3%) tend to deliver higher capital growth over time.

This is due to the market’s natural tendency to seek equilibrium. Investors are willing to trade off one benefit for another, accepting a stronger cash flow in exchange for slower capital growth, or vice versa.

That’s why we recommend targeting properties with a rental yield between 3.5% and 4.5%. This range reflects a balanced market, where investors can achieve reasonable cash flow while also positioning themselves for steady capital appreciation. A yield around 4.0% often signifies a suburb or location that is well-established, in demand, and poised for sustainable long-term performance.

By relying on clear metrics like rental yield and understanding how it relates to capital growth, investors can make objective, data-driven decisions, rather than emotional ones. Ultimately, the goal is to strike the right balance between earning income today and building wealth for tomorrow.

Two properties may sit side by side, be purchased for the same price, and require the same upfront investment, yet their week-to-week cash flow impact on the investor can differ significantly. One key reason? Depreciation.

At est, we understand that strategic property selection involves more than just location and price, it also means factoring in every opportunity to reduce your out-of-pocket costs. Among these, claimable depreciation is one of the most overlooked yet powerful tools available to property investors.

Depreciation refers to the natural wear and tear of a building and its fixtures over time. The Australian Tax Office allows investors to claim deductions on this decline in value, which can significantly improve your annual tax position and, in turn, reduce the cash you need to contribute personally.

To accurately claim depreciation, a Quantity Surveyor produces a detailed depreciation schedule for the property. This report breaks down every eligible item used in the construction, internally and externally, and categorises them into two main classes:

1. Fixtures and fittings (such as carpets, appliances, blinds)
2. Capital allowances (such as structural components, walls, roofing)

Each category has its own rules and timelines for depreciation, which vary based on the age, construction quality, and materials of the property. Generally, newer or newly renovated properties offer the most substantial depreciation benefits.
For investors, this can mean:

• Lower taxable income
• Higher annual tax refunds
• Reduced cash outlay to hold the property

Put simply, a well-structured depreciation schedule can help redirect tax dollars toward funding the investment, easing pressure on your weekly budget and improving the property's overall return.

At est, we assess the depreciation potential of a property before making any recommendations to our clients. It’s a key component of our due diligence process, because smart investing isn’t just about what you buy, it’s about how effectively that asset can work for you.

The final element in our 8 Property Selection Criteria is distinct from the rest. Unlike the first seven which are grounded in data, analysis, and measurable benchmarks, this last criterion is intangible, emotional, and human.

While property investment should always be guided by logic rather than emotion, it's crucial to remember that your tenants make emotional decisions. And in a competitive rental market, these decisions often come down to the finer details: the small, desirable features that make one property stand out from another.

At est, we refer to these as ‘Little Luxuries.’ These are the subtle value-adds that give a property a competitive edge in the eyes of a prospective tenant. They’re not essential, but they can make all the difference in rental appeal, tenant satisfaction, and long-term occupancy.

Examples of 'Little Luxuries' vary depending on the property type:

For house and land packages, this may include:

• A second living room or media space
• Split system air conditioning
• An undercover alfresco entertaining area
• A generously sized backyard or landscaped garden

For townhouses or apartments, it might include:

• On-site property management or concierge services
• Gated or security-controlled access
• Communal amenities like BBQ areas or landscaped courtyards
• A swimming pool, gym, or tennis court

These features cannot be quantified on a spreadsheet, but they have a real-world impact. They influence tenant choice, enhance lifestyle appeal, and can often justify slightly higher rents or reduce vacancy periods.

At est, we only assess these 'Little Luxuries' after a property has passed all seven of the essential, measurable criteria. Once the fundamentals are confirmed: strong growth, solid rental demand, infrastructure, and more, this final check ensures we’re not just selecting a financially sound investment, but one that’s desirable, liveable, and competitive in the real world.

Because in the end, the property you choose isn’t just an asset, it’s someone’s future home. And that emotional connection matters.