We’re seeing a gradual lift in investor activity this year, especially among smaller “mum and dad” style buyers. First home buyers are still going strong, while people looking to relocate are being a bit more cautious.
A few things are helping investors feel more confident right now, including changes to the Brightline Test, easier deposit/LVR rules, and mortgage interest deductibility coming back fully from 1 April 2025. Lower interest rates are also making a noticeable difference, with top-up costs easing for many people.
- In terms of what people are actually paying this year:
- Investors are sitting around $759,000
- First home buyers, about $700,000
- Movers, roughly $880,000
Most investors aren’t hunting for cheaper stock either, standalone homes are still a big part of their buying activity.
And interestingly, it’s not the big portfolio owners jumping back in. It’s mainly people adding their first or second investment property, often using equity from their own home to get started.
If you’re thinking about your next move, or wanting clarity around the current lending and tax settings, flick me a message. I’m happy to walk you through your options and what might work best.