When people think about what derails a property investor’s journey, they often point to rising interest rates, capital gains tax changes or a cooling market. But the truth is, most investors don’t fail because of external forces – they fail because of internal missteps.

In this episode of the Australian Property Investment Podcast, we break down the 20 most common property investing mistakes we see every day. Whether you’re just getting started or already own multiple properties, ignoring even one of these could set your wealth-building journey back years.

1. Thinking You’re Buying a Loan, Not a Property

It’s a mistake we see too often: investors obsess over the interest rate, cashback offers, or the loan structure – while giving little thought to the asset itself. The loan is just a vehicle. The property is the investment.

You can refinance your loan, but you can’t change the suburb, the block orientation, or the growth potential of the property you bought. Focus on buying the right asset first and foremost. That’s what builds long-term wealth.

2. Being a HENRY (High Earner, Not Rich Yet)

Earning $300K or even $600K a year doesn’t make you wealthy if you’re not using that income to build assets. Many HENRYs get caught in lifestyle inflation – leasing luxury cars, funding lavish holidays, and buying status symbols but forget to build income streams outside of their jobs.

If your job disappeared tomorrow, would your income? Use your high income while you have it to invest in appreciating assets, not depreciating liabilities.

3. Expecting Too Little from Your Team

Your mortgage broker, buyer’s agent, accountant, and financial adviser form the backbone of your strategy. Yet many investors take advice from professionals who have never built property portfolios themselves.

You need a high-performing team that understands scalability, tax structuring, and the long game. Don’t accept average input from someone just because they’re a friend or family member. If they haven’t done what you’re trying to do, move on.

4. Buying Without a Clear Strategy

“Just buying an investment property” isn’t a strategy. Before you purchase, ask yourself: Am I chasing growth, cash flow, or value-add potential? What’s my endgame… passive income, retirement, or early financial freedom?

A good strategy reverse-engineers your goals and maps a path to get there. Without one, you’re simply hoping for a good outcome, not planning for one.

5. Chasing Shiny Objects

The temptation to pivot into the latest trend – crypto, NFTs, Airbnb arbitrage- is real. But diversification without discipline is just a distraction. Property investing rewards consistency and compound growth, not erratic pivoting.

Stick to your plan. Master one wealth vehicle before dabbling in others.

6. Refusing to Make Sacrifices

Many investors say they want financial freedom but won’t sacrifice their lifestyle to get there. Fancy cars, overseas holidays and private school fees are all valid choices but they come at the cost of borrowing capacity and investment opportunities.

If you’re serious about building wealth, get clear on your priorities. Delayed gratification today could fund generational freedom tomorrow.

7. Playing Too Small or Too Safe

Playing it safe by buying one property and calling it quits may feel comfortable but it won’t lead to financial independence. Investors who succeed are those who think bigger and take calculated risks.

Most seasoned investors say the same thing in hindsight: “I wish I’d bought more.” Let that be your future perspective – start acting now.

8. Failing to Invest in Yourself

You are your greatest asset. Your ability to earn and grow income directly fuels your borrowing power. So why do so many spend $10,000 on a holiday but baulk at a $2,000 course that could increase their income?

Invest in education, coaching, and skills development. The ROI from personal growth often outpaces any property deal in the long run.

9. Thinking Equity is Risky

Using equity in your home to buy an investment property is not inherently risky. Poor advice and bad structuring are. The real danger is cross-collateralising loans, not equity release itself.

Smart investors leverage equity to build portfolios – safely, strategically, and with the guidance of a savvy broker.

10. Waiting to Pay Off the Home Loan First

Waiting 10–15 years to fully repay your home loan before investing is a classic example of opportunity cost. The property market doesn’t wait for anyone and while you’re focused on your principal, others are using leverage to build portfolios.

With smart debt management, you can reduce your home loan and invest at the same time.

11. Misalignment With Your Partner

Your financial strategy is only as strong as your household alignment. When one partner is focused on growth and the other fears debt, you get analysis paralysis. No decisions. No progress.

Start the conversation. Create shared goals. Build a vision that unites your strategy and your relationship.

12. Holding Onto Bad Debt

Credit cards and personal loans may seem harmless, but they crush your borrowing power. A $10,000 credit card can reduce your borrowing capacity by $50,000. That difference could cost you an entire bedroom or better suburb.

Clear the bad debt first. Then use your surplus to fund appreciating assets, not lifestyle liabilities.

13. Taking Advice From the Wrong People

Your mate at the BBQ who owns one investment property from 2003 is not a property strategist. Nor is your uncle who reads headlines from property news sites.

Use the “No Pay, No Say” rule. Only take advice from professionals you’ve engaged, paid, and vetted. Free advice often costs you more in the long run.

14. Investing for Ego

Buying for ego… just to say you own ten properties is dangerous. Quantity without quality leads to low-performing portfolios and constant headaches.

Forget the flex. Focus on acquiring fewer, higher-quality assets with strong growth potential.

15. Prioritising Cash Flow Over Growth

Many first-time investors chase positively geared properties too early. But at the acquisition phase, it’s equity growth – not $50 extra per week – that builds momentum.

Focus on growth early, then pivot to cash flow later when your portfolio matures.

16. Using Cash Instead of Equity

When you have usable equity in your home, using cash to buy an investment property is not efficient. Worse still, you lose the potential tax benefits of debt recycling.

Free up cash by releasing equity, structure the loan properly, and retain your buffers. That’s how you scale.

17. Buying for Tax Benefits Alone

Tax incentives like depreciation and negative gearing are great but they’re bonuses, not the reason to invest. If the property doesn’t grow in value, no amount of tax write-offs can save you.

Focus on investment fundamentals. Treat tax savings as icing, not the cake.

18. Waiting for the “Right Time”

There is no perfect time. Trying to time the market often results in missing it entirely. The best time to buy was yesterday. The next best time is today.

Successful investors make informed decisions, then act. They don’t wait for certainty.

19. Over-Analysing Every Deal

Endless research, spreadsheets, and comparison tools can keep you stuck. Data is useful but action is what builds wealth.

Set criteria, do your due diligence, and pull the trigger. Get a team that can support you if decision-making is your weak point.

20. Not Buying More When You Had the Chance

This is the most painful one. Investors who had the capacity to grow their portfolios but didn’t always regret it. Years later, they look back and realise how much they missed out on.

When the opportunity is there, take it. Momentum compounds, but so does regret.

My Final Thoughts

Most of these mistakes aren’t dramatic or complicated. They’re subtle mindset shifts, lapses in planning, or avoidable errors. But each one has the power to shape – or stall – your financial future.

This isn’t about being perfect. It’s about being intentional. Avoid these traps, and you’ll give yourself every chance of building a resilient, profitable property portfolio that supports your long-term goals.

Next Steps

If any of these mistakes sound familiar, it’s not too late to course-correct. Here’s what you can do now:

  • Conduct a portfolio audit – Are you guilty of one or more of these mistakes?
  • Book a strategy session – Work with a team who specialises in building high-performing portfolios. Click here to book your strategy call
  • Educate yourself – Subscribe to the Australian Property Investment Podcast for weekly episodes designed to help you grow.
  • Invest in advice – Surround yourself with a team that can help you make smart, scalable moves.
    Start now – Don’t let another year pass by. Momentum builds wealth.

Avoiding these 20 pitfalls won’t just save you money. It could mean the difference between retiring on your terms… or never retiring at all.