3 Things to Consider Before Buying an Investment Property in Wollongong
Buying an investment property in Wollongong can be a smart move — if you have a clear strategy from the beginning.
Whether you're a first-time investor or growing your portfolio, there’s more to successful property investing than buying in your own postcode or choosing the cheapest property available.
Before you buy, here are three key things you should always consider when investing in the Wollongong property market.
1. Capital Growth Potential in Wollongong Suburbs
One of the most important factors when choosing an investment is capital growth — that is, how much your property is likely to increase in value over time.
Wollongong and the greater Illawarra region have seen strong growth over the past decade, but not all suburbs perform equally. Some areas are reaching maturity, while others are still on the rise due to infrastructure investment, gentrification, or population growth.
When I’m assessing capital growth potential in Wollongong, I look at:
Suburb-level data on median price trends
Proximity to beaches, train stations and town centres
Upcoming developments like schools, hospitals or retail centres
Migration trends, especially from Sydney
Vacancy rates and buyer demand
Some suburbs with strong long-term potential include areas like Dapto, Unanderra, Berkeley, and Woonona — depending on your budget and strategy.
Buying in a suburb with strong capital growth drivers can significantly boost your equity over time — helping you grow your portfolio faster.
2. Rental Yield and Demand in Wollongong
Rental yield tells you how much income a property generates compared to its purchase price. But just as important is how likely it is to stay tenanted.
Wollongong has a mix of high-yield suburbs (often further south or inland) and lower-yield, high-growth suburbs closer to the beach and city.
Here’s what I look at when assessing rental potential:
Current rental demand and tenant demographics
Weekly median rent vs. purchase price (rental yield %)
Vacancy rates (ideally under 2%)
Proximity to university campuses, hospitals, or commuter stations
Infrastructure that supports rental demand (public transport, amenities, employment hubs)
If your goal is long-term wealth, it’s not always about the highest yield — it’s about choosing a property that supports your cash flow and is easy to hold while you benefit from growth.
3. Ability to Add Value (Don't Rely on the Market Alone)
This is where many Wollongong investors miss the mark.
Buying a freshly renovated home might feel safe, but you're paying a premium for someone else’s work — and missing out on forced capital growth.
Instead, I recommend buying properties with value-add potential, like:
Cosmetic renovation opportunities (new kitchen, paint, flooring)
Adding a secondary dwelling or granny flat (common in larger southern suburbs)
Duplex or development potential (especially on corner blocks)
Subdivision opportunities in areas like Dapto, Horsley or Corrimal
By adding value yourself, you’re creating equity faster — and that equity can be used to fund your next property, rather than waiting years for the market to rise.
Final Thoughts
Wollongong continues to attract both local and out-of-area investors because of its affordability (compared to Sydney), coastal lifestyle, and long-term growth prospects.
If you’re thinking about buying an investment property in Wollongong, remember to:
✔ Buy in a suburb with capital growth drivers
✔ Choose an area with strong rental demand
✔ Look for properties with value-adding potential
This combination is what separates single-property investors from portfolio builders.
Need help finding the right investment property in Wollongong?
At Wollongong Property Buyers, we work with investors to find off-market and on-market opportunities that align with your long-term goals — and we do it with a strategy that’s backed by data and experience.