Buying an investment property isn’t about emotions — it’s about numbers. The right data can reveal whether a property will help you build wealth or hold you back. Here are five simple, reliable metrics to help you assess an investment property in today’s market.
Metric 1: Median House Price
‘Median house price’ shows the middle value of all properties sold in an area over a given period. It’s not the average — it’s the midpoint, which makes it less affected by extreme highs or lows.
As of mid-2025, Australia’s mean dwelling price sits at around $1,016,700, up roughly $14,000 this quarter (ABS). Median dwelling values have risen about 4% year-on-year, with stronger gains in Brisbane, Perth, and Adelaide, and modest growth in Sydney and Melbourne.
Tip: Don’t rely on national data. Always check suburb-level medians and compare trends over the past 6–12 months to see which areas are gaining momentum.
Metric 2: Vacancy Rates
Vacancy rate tells you how many rental properties are sitting empty in a given area.
It’s one of the clearest indicators of supply and demand — and therefore rental potential.
In 2025, the national vacancy rate remains incredibly tight at around 1.2%, well below the “healthy” 3% mark.
- Sydney: ~1.4%
- Melbourne: ~1.8%
- Brisbane: ~1.0%
- Perth: ~0.7%
- Canberra: ~1.6%
A low vacancy rate means strong rental demand and minimal downtime between tenants. But beware of pockets with high new-build supply, as vacancy can shift quickly once new stock enters the market.
Metric 3: Days on market
Days on Market shows how long a property takes to sell.
- Short DOM = high demand and faster turnover (a sign of confidence).
- Long DOM = slower market and better negotiation leverage for buyers.
In 2025, DOM is trending down again after last year’s slowdown, thanks to renewed buyer activity as interest rate cuts take effect.
If you’re investing, compare your suburb’s DOM to nearby areas — it can signal when momentum is building or cooling.
Metric 4: Loan-to-Value Ratio (LVR)
Your Loan-to-Value Ratio (LVR) measures how much you’re borrowing against a property’s value.
Example: If you borrow $800,000 on a $1 million property, your LVR is 80%.
The higher your LVR, the more risk the lender takes — and the more likely you’ll need to pay Lenders Mortgage Insurance (LMI).
In the current environment, lenders are cautious with high-LVR investment loans. A lower LVR (typically under 80%) not only reduces your risk but may also unlock better rates and more flexible structures.
Metric 5: Rental Yields
Rental yield measures the income your property generates relative to its cost.
Gross Yield:
Annual rent ÷ purchase price.
(Example: $600/week rent = $31,200 ÷ $780,000 = 4% gross yield.)
Net Yield:
Rent after deducting expenses (rates, insurance, maintenance, management fees, and vacancy allowance) ÷ property value.
In 2025, with elevated interest rates, focusing on net yield is critical. A property showing a 4% gross yield might deliver only 1–2% net after costs — so make sure the cashflow stacks up.
Bonus Metric: Market Growth Outlook
With rate cuts on the horizon and ongoing housing undersupply, most economists predict moderate growth for 2025 — around 4–5% nationally (KPMG).
However, affordability pressures and strict lending criteria mean growth will likely be uneven, so always apply a “local lens” to forecasts.
The Takeaway
These five metrics — price trends, vacancy rates, DOM, LVR, and yield — give you a quick but powerful snapshot of a property’s potential.
They won’t replace a full financial strategy, but they’ll help you spot red flags and opportunities early.
Need Help Running the Numbers?
That’s what we do every day at Trilogy Funding.
Book your Free 30-Minute Finance Strategy Session and we’ll:
- Show how to use these metrics to evaluate your next investment
- Help you unlock equity in your existing property to grow your portfolio faster
- Identify the most competitive investment loan structures for 2025
You’ll walk away with real numbers, real clarity, and a clear next step.
Schedule Your FREE 30-Minute Finance Strategy Session Today
Please note, the numbers and assumptions listed in this article are for educational purposes only. Individuals should seek specific advice pertaining to their unique situation and the real estate market before making any decisions.
Trilogy Funding Two is a corporate credit representative (Representative Number 506131) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237)
About the Author
Since 2008, David Thomas has built a business aimed at servicing the needs of property investors, owner occupiers and small business owners. David is recognised as one of the top 10 independent mortgage brokerages in the country, David and his team have settled almost billions of dollars worth of residential and investment loans over the last decade.
Known for his straightforward, relatable style, David believes by educating people about property funding; they fare better in the market. By sharing his expertise openly, some of the people he educates will likely become his clients. It's a win-win approach.
David Thomas is a credit representative (Representative Number 506153) of BLSSA Pty Ltd, ACN 117 651 760 (Australian Credit Licence 391237).