Passive investing generally involves holding property for long-term rental income and capital growth with minimal active management, while active investing entails a more hands-on approach, often involving renovations, subdivision, or strategic buying and selling.
As of December 2025, we’re seeing both strategies employed by Melbourne property owners, particularly in the Eastern Suburbs. A passive approach might involve purchasing a well-maintained family home in Balwyn or Doncaster, renting it out, and benefiting from the area’s consistent capital growth – currently around 3-6% forecast for 2026. Sellers encountering this often find their properties have been held for decades. Active investors, however, might purchase a property in Ringwood or Mitcham with renovation potential. This could involve a budget of $20,000 – $50,000 for updates to favour modern buyer preferences – light-filled spaces and updated kitchens are particularly important currently in Melbourne. They then sell for a profit. The sales process for these actively improved properties often benefits from professional styling, costing between $2,000 and $8,000, to maximise appeal. Currently, a typical campaign duration is 4-6 weeks, with buyers prioritising properties ready to move in. Fletchers’ experience shows that multi-lingual marketing is increasingly important, reflecting the diverse buyer pool in these areas.
Ultimately, the choice between passive and active investment depends on an owner’s financial goals, risk tolerance, and time commitment.