If you’re a homebuyer in the US, you’re naturally going to focus more on price, school district, and overall size of the property. However, investors in other parts of the world often think several steps ahead. For instance, in Australia, many homebuyers look to the future with long-term plans, diverse ESG investment vehicles, and community driven design that protects their investments. Here are a couple of lessons from Australian property investors that you can learn from and apply in the US to make your investment work.

Think Like an Institutional Investor

The first lesson you must learn is to think like an institutional investor, which is exactly how homebuyers work in Australia. They’re extremely cautious when evaluating any project and always consider location, steady cash flow, tenant quality, and other long-term environmental risks before taking the plunge. A good example is Investa Real Estate, which manages large commercial and residential portfolios in Australia.

The firm has a strategy that combines ESG, leasing, and innovation into one single investment thesis. Instead of investing in hot locations that are popular in Australia, Invest focuses more on investing in locations with the potential to deliver strong results in the decades to come. You can use the same mindset in the US mainly by asking a few investor-type questions, such as:

• Will this be a good location in 10 years’ time?
• Are there any walkable amenities available with transit options and other facilities?
• Are energy efficiency, construction quality, and climate-related issues (heat, flooding, fire) being taken seriously by developers and landlords in the area?

It implies that you don’t need to become a fund manager to yield a higher return on investment. All you need to do is adopt Invest real estate-style thinking to avoid a potentially troublesome neighborhood that looks cheap now but might be difficult to resell or insure in the future.

Focus on Communities and Experiences

A growing trend in the Australian real estate market is that investors have stopped taking buildings as boxes but instead take them as places that provide buyers with unique experiences.

Top players in the industry are focused on build-to-rent properties, especially studio living communities. These are properties where exceptional service, ample community spaces, and focus on tenant well-being are part of the design. 

The idea is that when people feel taken care of, they tend to stay longer and pay more for your rental property. This improves cash flow and decreases churn rates as well. A potential property buyer in the US can benefit from this approach by asking some questions upfront. For instance:

• How walkable is the area? How much social infrastructure is already built into public spaces such as parks?
• How much investment has been made into providing experiences rather than just spaces?
• Are there community events, work-from-home spaces, pet-friendly policies, or community apps for residents?
• How is the area likely to develop over time? Is there consistent investment in mixed-use development or is the area plateauing?

By considering the vibes and quality of a potential property, investors in the US can take advantage of the community-first property development approach, which is likely to pay them in the long run.

Endnote

When looking closely into Australian property investing, you’ll notice that it’s much more than an exotic case study. It’s essentially a unique approach with a set of habits, disciplined long-term thinking, performance checks, and a community-centric approach that could help regular people protect their investments and live better lives. If you take some cues quietly, you’ll begin to think less like a consumer and more like an owner who is ready for the next market cycle, not just the next listing.