There are plenty of opposing factors to weigh up this year
Our Buyer Classification data shows that mortgaged multiple property owners, including ‘Mum and Dad’ investors, have recently returned to a normal presence in the property market, with their share of purchases nationally having risen from a cyclical lull of around 20% a few years ago to roughly 25% now. That’s in line with the long-term average.
But how might 2026 play out? As I see it, new investors or those looking to grow their existing portfolio will have plenty of opposing considerations to weigh up.
On the supportive side ….
Clearly, the shortening of the Brightline Test 18 months ago and the full reinstatement of mortgage interest deductibility for all properties in the current tax year are supportive for investors. Meanwhile, although the value of existing holdings may have suffered in the past 3-4 years (our national index is still down 18% from the early 2022 peak), the flipside is that lower prices make it easier to get another purchase over the line.
The falls in mortgage interest rates are also a huge boost for property investors, reducing the cashflow top-ups typically required for the next purchase.
And on top of all that, the LVR rules were loosened on 1st December. Under the previous 5% speed limit for low-deposit lending to investors (<30% equity), it effectively meant no finance was available for existing properties, unlike exempt new-builds. But with that speed limit now up at 10%, some investors may find things a little easier.
…. but don’t forget the other side of the equation
That said, insurance costs and council rates have already risen significantly lately and continue to increase. In an election year, we also already know that capital...
