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Why three quality properties beat thirty average ones

ByAndrew Mirams

The property industry loves a success story. You know the type: someone goes from zero assets to 10, 20, even 30 properties in a few short years. The media eats it up, buyers’ agents use it as marketing gold, and before you know it, everyone’s chasing the dream of an ever-expanding portfolio.

But here’s the thing that gets lost in all the noise: successful property investment isn’t about how many properties you own. It’s about owning the right ones.

I’d argue that three or four well-chosen assets can easily outperform a portfolio of 10-plus properties. It’s all about strategy and selecting quality real estate over chasing numbers.

Quality beats quantity every time

Asset quality is everything. It’s better to own one exceptional property than five underperforming ones.

What makes a quality asset? You need a property that generates strong enough rental income to help service your debt and running costs, while also offering excellent capital growth potential. Cashflow keeps you in the game long-term, but capital gains are the real wealth engine of property investment.

Of course, what constitutes a suitable investment varies depending on your age, life stage, goals and resources. First-time investors might need something price-accessible with above-average rental yield to help service their loan early in the journey. More sophisticated investors with higher incomes might choose expensive properties in blue-chip locations because they have better capacity to service loans without stressing their household budget.

The borrowing capacity reality check

Social media is full of property influencers touting the idea of continuously borrowing to secure more and more high-yield properties. Their model assumes unlimited access to finance and endless multiplication of assets.

The reality is different. No one has unlimited borrowing capacity. Lenders assess not just your income but your risk profile, and the quality of your assets matters as much as the cashflow you generate.

Remember the mining boom 20 years ago? Plenty of investors bought mining town properties with extraordinary rental returns, expecting that cashflow to continue indefinitely. When the boom ended, they were stuck with vacant properties worth a fraction of what they’d paid.

They would have been far better off seeking quality properties with the right fundamentals for long-term growth and reasonable yields in major cities with diversified economic drivers.

Build your safety nets

I’ve had investors approach me who are stretched to their absolute borrowing limit, hungry to acquire more and more properties. The problem? They’re so leveraged that the slightest hiccup will see their finances unravel. They’ll be forced to offload assets quickly for emergency cash, often accepting distressed sale prices.

A conservative approach with quality assets and financial buffers is far smarter. Keep extra funds liquid, ready for unexpected repairs, maintenance or holding cost shortfalls. Buffers buy you time and flexibility.

Every successful property investor I know has good buffers in place—whether it’s cash in offset accounts, using equity wisely, or maintaining access to credit facilities.

Don’t forget to enjoy the journey

Another compelling reason to adopt a balanced approach with fewer high-quality assets? You’re not constantly living on your financial edge with no room to enjoy life.

I know plenty of people who look like multi-millionaires on paper but spend every spare cent servicing loans. No money for holidays, dinners out or life’s simple pleasures. You’ve got to enjoy the journey, and having fewer high-quality assets allows you to do exactly that.

Investing shouldn’t dictate how you live – it should enhance it.

Get past the ego

Some investors build large portfolios to compensate for other shortcomings. They want to be the person at the dinner party boasting about how many homes they own.

But investing isn’t about inflating your self-image. It’s about being smart with numbers and making savvy financial decisions, not superficial ones. The quiet investor in the corner with a few high-quality properties will succeed over the person talking themselves up to others about the size of their, um, “asset pool”.

Economics, not ego, should drive your decisions.

Stick to your strategy

When it comes to investing, planning trumps impulse buying every time. Think about your long-term goals and resources. Consider how your life will evolve—growing family, home upgrades, school fees and other life events all need to be factored in.

Building a portfolio that makes steady progress toward your goals while keeping borrowing manageable, maintaining financial buffers and allowing you to enjoy life is the proper way to invest. Do this, and you’ll realise that fewer high-quality assets will outperform the ill-informed property hoarder’s approach every single time.

It’s not about collecting properties like trophies. It’s about building wealth intelligently, sustainably and in a way that enhances rather than consumes your life.

And central to all of this is managing your arrangements with financiers properly – which is where working with an experienced mortgage broker becomes invaluable.

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Andrew Mirams
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