Thinking about taking the leap into property investment? Here's a state-by-state breakdown of the areas offering the best entry points for those just getting started.
According to the PropTrack Westpac Investor Report 2026, the conditions for investors across much of Australia remain compelling, albeit with some important changes following the latest Federal Budget.
But getting your first investment property right can feel overwhelming; there are suburbs to research, budgets to stretch, and market cycles to try and time.
The Federal Budget has introduced changes that will reshape parts of the investment landscape in the coming years, particularly for new entrants.
While the fundamentals of supply, demand and rental returns remain strong, investors are now navigating a more nuanced environment, with incentives increasingly shifting towards new housing supply.
There are, however, some genuinely exciting opportunities on the table.
Queensland is still providing fantastic investment opportunities. Picture: Getty
So, where should a first-time investor start looking?
Victoria
Melbourne might just be the most compelling story in the country right now for first-time investors.
After a few quieter years, confidence has returned and crucially, affordability remains far stronger here than in Brisbane or Perth.
For unit investors, Notting Hill, Burwood East and Cremorne are the standout suburbs, with median sale prices starting at $400,000, and gross rental yield of up to 8.1% which is rare in any capital city market.
For those after a house, Coolaroo in Melbourne's north-west offers accessible pricing under $650,000 with solid growth and tenant demand to match.
Meadow Heights, which is just up the road, along with Carrum in the inner south, also lead the rankings based on price growth, rental rates and lease times.
New South Wales
Sydney has a reputation for being expensive, and in many parts, it is.
But look beyond the harbour and a different picture emerges.
Investors now account for a near-decade high share of New South Wales home loans, although market dynamics are expected to evolve as policy settings change over time.
For units, Moorebank, Chipping Norton and Kingsgrove in Sydney’s south-west are quietly delivering the kind of numbers that turn heads: strong price growth, solid rental yields, and properties that spend as few as two weeks on the market before leasing.
NSW Central Coast offers a relaxed lifestyle, with great entry points on homes. Picture: Getty
On the Central Coast, Tumbi Umbi offers a more relaxed lifestyle proposition with houses priced around the $1.15 million mark, and growth that's comfortably outpacing the Sydney average.
North Richmond in the outer west and the Blue Mountains region are also among the top-ranked for houses.
Queensland
It’s no secret that Queensland has had a big year.
Investor loans in the state rose 8% year-on-year in 2025 and now sit at roughly double the level recorded in 2020.
Competition is real, but so are the returns.
In Brisbane's inner city, Spring Hill, Thorneside and Brisbane City are punching well above their weights for units with strong yields and fast leasing times, with capital gains at significantly higher levels than the rest of the city.
Further south, Biggera Waters on the Gold Coast tells a different story: a holiday-coast suburb delivering price growth that would make most capital city investors jealous, with properties typically leased within three weeks.
North Booval and Lowood in Ipswich are also among the top suburbs for houses.
South Australia
Adelaide has arguably been the quiet achiever of the past few years, and investors have noticed.
Loans to investors in South Australia are sitting at near-record levels, drawn in by a market that still offers genuine affordability alongside impressive growth.
For houses, Elizabeth Park, Eyre and Elizabeth East lead in terms of performance on price growth, lease times and rental returns, with price growth almost double the capital city level.
For units, the highest metrics sit with Salisbury, Plympton and Henley Beach.
Western Australia
Perth has led national price growth for years, and investor demand has remained strong, supported by tight rental conditions and population growth.
The inner suburb of Leederville is a particular standout for unit investors, with fast leasing times, strong yields and price growth that has been exceptional even by recent Perth standards.
Cannington, Pinjarra and Sinagra were the best-performing investor suburbs for houses, with rental yields at more than 4% and price gains surpassing the broader Perth market.
For those interested in units that can be leased in under a fortnight, look to Leederville, Bayswater and Jolimonth.
Australian Capital Territory
Canberra may not have seen the same pace of price growth as some other capital cities, but it’s quietly becoming a stronger contender for investors.
Banks, Strathnairn and Franklin have emerged as top performers for houses, recording price growth more than three times the Canberra average.
Canberra is becoming attractive for investors, despite slower growth than other capitals. Picture: Getty
In the unit market, Denman Prospect, Mawson and the City have led the way. These areas have combined solid price growth with rental returns at least one percentage point higher than the Canberra average, alongside consistently short leasing times.
What’s changed for new investors?
For first-time investors entering the market today, one important shift is where investment activity is likely to concentrate. Recent policy changes are expected to place greater emphasis on newly built properties over established homes, particularly from a tax and cash flow perspective.
That doesn’t change the importance of location, rental demand or long-term growth. But it does mean investors will need to think a little more carefully about the type of property they choose, not just the suburb.
Getting the finance right from day one
Of course, finding the right suburb is only half the battle.
For first-time investors, knowing your numbers before you start searching makes all the difference, especially in an environment where lending conditions, costs and policy settings are evolving.
"Our role at Westpac is to help investors understand their options and move forward with confidence, ensuring our support reflects their needs around cash flow, investment planning and portfolio management,” Westpac Home Loan Specialist, Nicole Hill, says.
Westpac's Book a Banker tool lets prospective investors sit down with a home lending expert at a time and place that suits them, well before they've found a property they want to move on.
Because in a market where good opportunities lease in under a fortnight, the last thing you want is to still be sorting out your finances.
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