Investment Property in 2025: End of Year Strategies
As the year winds down, smart investors are reviewing their portfolios and planning for 2026. Here's what you need to know.
Market Conditions for Investors
2025 has been favorable for property investors:
- Three rate cuts improving cash flow
- Strong rental growth in most markets
- Capital gains in key cities
- Population growth supporting demand
Hot Markets for 2026
Brisbane: Strong fundamentals with Olympics infrastructure boost
Perth: Affordability and mining sector strength
Adelaide: Relative value compared to eastern states
Melbourne: Recovery presenting buying opportunities
Units vs Houses
One of the biggest trends has been units outperforming houses in several markets. Factors driving this:
- Lower entry price points
- Strong rental yields
- Land tax making houses less attractive in some states
- Lifestyle preferences shifting
End of Year Checklist
- Review your rate: Has your lender passed on all cuts?
- Check your loan structure: Is it still optimal for tax?
- Assess your portfolio: Is it time to buy, hold, or sell?
- Plan for depreciation: Have you maximised deductions?
2026 Planning
If you're looking to expand your portfolio in 2026:
- Get pre-approved early
- Research target markets thoroughly
- Model cash flow under different rate scenarios
- Consider emerging areas before they peak
A specialist investment property broker can help structure your portfolio for optimal returns and tax efficiency.