Why So Many People With the Means Still Don’t Buy Their First Investment Property

You’ve probably met them, high-earning professionals who can afford an investment property… but haven’t bought one.

Most people assume affordability is the barrier. The real reason? It’s decision paralysis, psychological risk management and strategy confusion.

Below we unpack the data, the why, and especially the strategic mindset shift missing for many professionals.

The Data: Property Investment in Australia (Reality, Not Myth)

📉 78% of Australian households do not own an investment property — only about 22% do. (Property Update) That is a crazy stat especially since 95% of millionaires have property in their portfolio.

Of the 22% who do invest:

• ~71–72% own only one investment property. (Centra Wealth Group)

• Smaller percentages own 2 or more, and very few own 5+. (Centra Wealth Group)

This means most people with at least one investment don’t go further even though they might have the capacity to build a portfolio. 

And the trend over the last decade shows younger people are retreating from property as an investment class, suggesting preference and behaviour, not just affordability, are at play. 

Let’s dig into the real barriers, the ones you won’t read in a hype reel.

There are 5 main reasons why these people do not invest.

1. Paralysis Analysis

Highly analytical professionals habitually research right up to the moment they should act. They get so obsessed in making the right decision that they end up mot making any decisions at all as everything needs to be perfect and in reality nothing is.

They seek:

• the perfect suburb

• the perfect price

• the perfect timing

Property markets don’t reward perfection they reward progress. Waiting for a flawless entry often means never entering.

2. Fear of “Getting It Wrong”

For many high achievers, financial decisions are emotional as well as logical. They fear looking incorrect, not just losing money.

Buying a property is a public commitment where even a small loss feels like a personal failure to some, especially when peers are watching. But why should be risk not creating a life of financial security and independence for the sake of these people?

3. Misunderstanding Leverage & Opportunity Cost

Many people assume you need all your capital upfront but investment property works differently.

Borrowed capital (smartly used) can amplify growth, and assets can pay for future assets. This is why investing in areas of higher capital growth or reno-vesting can help you. When the property value goes up you then create equity which is the difference between the current property value and the purchase property price. You can then refinance the loan to the higher property price and use the equity for a deposit on the next investment or use that for a totally different investment like shares or starting your own business. 

Within a year you could make $50k+ on the property when invested in the right areas and in just two years some properties can excel to $200k capital growth. How long would it take you to save or even make that amount? I can guarantee you it won't happen that quickly. 

Without grasping this strategic leverage, many professionals assume they’re not ready even though they already are.

4. Lifestyle Protection & Risk Aversion

We all have biases:

• “I want flexibility.”

• “I don’t want to be tied to a mortgage.”

• “What if interest rates go up?”

These are rational concerns but they become paralysing when not weighed against the cost of inaction. Your salary alone will never get you to financial independence. The sooner you understand this, the closer you will get to living your dream life.

5. Noise, Headlines & Emotional Whiplash

Headlines swing wildly:

• “Market will crash!”

• “Prices to the moon!”

• “Interest rate shocks!”

Without a grounded strategy, buyers react emotionally to noise which leads to inaction. The truth is that yes all of these things could happen but it should now make a difference to you if you invest in the right way.

What the Data Actually Shows

Here’s the twist most people miss:

➡️ Owning property isn’t about perfect timing it’s about smart sequencing.

➡️ The first well-chosen property is the engine of future growth, and often funds the second and third.

➡️ Wealth accumulation isn’t linear it’s strategic.

And the numbers show this:

✔️ More than 2.2 million Australians own at least one investment property. (Property Update) ✔️ Around 71 % of those investors stop at one property. (Centra Wealth Group)

This isn’t because they can’t afford another, it’s often because they don’t know how to structure the next one properly.

The Big Shift: From Fear to Framework

Here’s what separates those who act from those who don’t:

❗ Strategy over sentiment: Your approach should be structured, not emotional.

❗ Sequence over timing: You don’t need the perfect moment you need the right execution plan.

❗ Framework over fear: Understanding how to bridge risk, leverage, and growth is more valuable than predicting markets.

Many professionals say: “I’m waiting until I earn more.”

Wrong.

Real growth often begins when you use what you already have with a smart plan, not a perfect forecast.

Just like a portfolio, personal financial growth compounds but only when you start.

Ready to Move Past the Starting Line?

If you’re earning well but still hesitant to invest, reach out there’s a strategy waiting for you and I am here to help you find it and get one step closer to financial independence.

Your first step starts with downloading your free guide to property investing the right way through link here.