Scott O’Neill and his wife Mina have established a portfolio of 28 properties generating $300,000 in annual profit and around $7 million in equity. · Source: Supplied/Getty
Australia’s property market is in transition. Interest rates are falling, inflation is easing, and confidence is slowly returning but the uncertainty isn’t over.
As an investor, I’m not trying to time the market. Instead, I’m building a portfolio that can weather different conditions, not just chase the next upswing.
I’m sharing what’s worked for me.
Not as a blueprint for others, but as a reflection of the approach that’s helping me move forward in a shifting market.
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When I first started investing, I focused purely on residential.
But I’ve since realised that overexposure to any one asset class leaves you vulnerable especially when yields fluctuate or government policy shifts.
Now, I aim to maintain a balanced mix of residential, industrial, medical, and retail commercial properties.
My residential assets are typically growth-oriented, while my commercial properties provide stronger income.
Combined, this gives me both short-term cash flow and long-term wealth creation potential.
Scott has managed to grow his property portfolio to allow him to live off passive income. (Source: Supplied)
Economic cycles come and go, but some industries remain stable through it all.
That’s why I’m investing in medical and healthcare assets; properties leased to dentists, physiotherapists or GPs tend to remain in demand, regardless of what’s happening in the broader economy.
I’ve also focused on industrial properties tied to logistics and e-commerce.
These tenants have continued to grow, even during downturns.
In the retail space, I’ve stuck with essential service businesses, like grocery stores and pharmacies, rather than discretionary retailers more vulnerable to consumer sentiment swings.
These sectors aren’t immune to risk, but they do tend to offer more resilience than others when uncertainty strikes.
Another shift I’ve made is expanding my portfolio across multiple states and regions.
Early on, I learned that if all your properties are in one market, you’re exposed to its specific risks; vacancy, policy changes, economic slowdowns.
Now, I spread my investments between metro and regional areas, with a close eye on infrastructure investment and government spending.
Areas benefiting from new transport links, hospital upgrades, or economic zones often see steady uplift, not overnight gains, but sustainable, compounding growth.
La historia continúa
While falling interest rates are easing pressure on investors, I’m still focused on cash flow as my #1 priority.
Rather than hoping for capital gains, I’m investing in properties with strong, stable rental yields that can support my portfolio day-to-day.
This helps me maintain a positive cash position, even as expenses rise or vacancies emerge.
It also means I can build a financial buffer; using surplus income to fund maintenance, cover shortfalls, or pounce on new opportunities when the market turns.
With interest rates coming down and confidence rebuilding, some investors are rushing back into the market.
But for me, the focus isn’t speed, it’s sustainability.
By diversifying across asset classes, choosing essential-service sectors, spreading risk geographically, and maintaining strong cash flow, I’m building a portfolio designed to last.
Of course, this is just what’s working for me.
I always encourage speaking with a licensed professional before making any investment decisions.
But in uncertain times, the best strategy might not be timing the market at all… it’s building one that’s ready for whatever comes next.
Scott O’Neill is a prominent Australian property investor featured in AFR’s Young Rich List three years in a row. He is an entrepreneur and Founder & CEO of Rethink Group a premium property investment group, host of the top commercial property podcast “Rethink Investing’s Inside Commercial Property’’, co-author of “Rethink Property Investing’’ Australia’s number one commercial property investing book.
The information provided on this website is general in nature only and does not constitute financial advice. Before acting on any information, you should consider your personal objectives, financial situation or needs.