She emphasised that budgeting is crucial as 2023 “is certainly not the year to fall victim to stretching yourself thin”.

“The changes to the interest rate environment have already made a dent in the budgets of households all over Australia. Set your budget from the start and ensure you’re leaving enough room to be able to counter any further rate rises or unexpected expenses,” Ms Porter said. 

At the Reserve Bank of Australia’s (RBA) final meeting for 2022, it opted to raise the cash rate by 25 basis points to 3.10 per cent, marking the eighth consecutive monthly increase. As a result, many Australians have seen their budget tighten as mortgages rose in accordance with the RBA’s decisions.

“When buying in unknown times, you’ll want to buffer, especially as home owners stretched for cash opt to sell their homes quickly,” Ms Porter said. 

She explained a rise in mortgagee in possession sales could coincide with a rise in defective homes for sale, with Ms Porter outlining, “you might be snatching a bargain, but there could be defects you didn’t see warning of, and you’ll need a buffer to address them.”

As for where the best location to buy in during 2023 is? Ms Porter believes the year ahead presents a perfect opportunity to purchase beyond your backyard.

“Diversification is key in 2023,” she said. “We know there is plenty of opportunity for investors if they know what to look for.”

“You can still get a great investment property in South Australia with less than $500,000. With this kind of investment, you can typically get an older house, under half an hour of [the] city or a townhouse or villa in closer proximity to the CBD.”

Her final rule for investors heading into the new year is to ensure investors complete their homework — especially around vacancy rates — and understand the numbers surrounding any prospective properties, no matter where they choose to invest.

“Speak to valuers and local agents to make sure the numbers stack up and cross reference this with your own research,” Ms Porter concluded.