5 property investment myths that could cost you big

Everyone’s got an opinion on property investing - your mate at the BBQ, your uncle at Christmas, even that stranger on Facebook. Trouble is, following the wrong “advice” could cost you serious wealth. Let’s bust five myths that hold investors back and set the record straight.

1. Negative gearing is the only way to make money

Negative gearing hogs the spotlight, but let’s call it what it is: a tax perk, not a strategy. Building your entire wealth plan around “lose money now, save on tax later” is basically volunteering to prop up the ATO.

The truth? Many of DPN’s investors are enjoying positive gearing (where rental income covers the costs and then some). That means cash in your pocket now, while the property also grows in value over time.

👉 DPN insight: With dual-income designs like duplexes and dual income homes, our clients are creating portfolios that are positively geared and positioned for long-term growth. That’s not just smart, it’s sustainable.

2. Interest-only loans are too risky for investors

Interest-only loans get a bad rap in the media, like they’re some kind of financial hand grenade. In reality, when used strategically, they can free up cash flow and give investors breathing room to scale their portfolios faster.

Yes, you’ll still owe the principal. But in the meantime, your property is (ideally) growing in value and your rent is covering more of the costs.

👉 DPN insight: Our mortgage brokers design finance structures that balance IO and P&I, offset accounts, and tax considerations. Translation: you get flexibility without losing sleep.

3. Property investing is always “passive income”

Hate to break it to you, but for many DIY landlords, property feels less like “passive income” and more like a part-time job. Tenant arrears, emergency plumbing, chasing tradies - suddenly your investment looks a lot like unpaid property management.

The truth? Investing only becomes passive when you’ve got a proactive management team that takes the hassles off your plate.

👉 DPN insight: With DPN’s property management, there are no late-night tenant calls or missed inspections. We handle the details, you get the income. That’s what passive is meant to feel like.

4. You should buy near where you live

This one’s as old as the sausage sizzle: “Just buy in your own backyard.” Sure, familiarity is comforting. But comfort doesn’t always equal returns.

Property grows where the data points. Think infrastructure, population growth, vacancy rates, rental demand. Not necessarily where you grab your morning coffee or head to on a long weekend getaway

👉 DPN insight: Our research team analyses markets across the country to uncover high-performing areas. That’s how you get growth opportunities most local-only investors never see coming.

Negative gearing is a tax perk, not a strategy.

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5. Building is too complex for investors

Mention construction and some investors break out in the sweats. They imagine endless delays, dodgy builders, blown-out budgets. Fair enough, but that’s only if you’re flying blind.

Here’s the reality:

  • Newer properties rent for up to 20% more than older ones in the same area.
  • You also score higher tax benefits thanks to depreciation on brand-new fixtures, fittings and builds.
  • And modern builds are generally more energy-efficient, lowering running costs and making them more appealing to tenants.

Far from risky, building can actually give investors a big advantage if you’ve got the right team handling the process end-to-end.

👉 DPN insight: Our builder partners are tried, tested and with us for the long term. We specialise in dual-income and duplex construction that delivers higher yields and stronger long-term returns, without the headaches. From site selection to handover, we’ve got it covered.

Final word: Facts beat fiction

Here’s the kicker: property investing is noisy. Myths, opinions, half-truths -they’re everywhere. But the investors who succeed are the ones who cut through the nonsense, get the facts, and make educated decisions.

At DPN, we’re here to bust the myths, back it up with research, and give you a smarter, simpler way to build wealth, from finance to construction to property management.

👉 Ready to invest without the myths holding you back? [Book your free strategy session →]

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