There has been plenty for property investors to digest in 2026.
Three interest rate rises, changes to negative gearing and capital gains tax, softer property prices in some markets and changing lending conditions have all shifted the investment landscape.
But change doesn’t necessarily mean there aren’t opportunities.
For existing investment property owners, this could be a particularly worthwhile time to review how your property is performing – from the rent you are receiving and the equity you have built, through to the interest rate you are paying and what your next investment move might look like.
Where interest rates currently stand
The Reserve Bank of Australia held the cash rate at 4.35% in August, following three increases earlier this year.
While the RBA has indicated that further increases remain possible if inflationary pressures persist, it is also seeing signs that higher rates are having an impact. Housing prices have declined in recent months and new housing loan commitments have fallen sharply, particularly among investors.
The RBA currently expects inflation to gradually moderate, returning to the middle of its 2–3% target range in early 2028.
For borrowers, that makes trying to predict exactly where rates go next difficult. What investors can control, however, is whether the loan they already have remains competitive.
Banks still want your business
One interesting consequence of fewer people applying for new investment loans is increased competition for the borrowers who are in the market.
According to Carl Violeta, Finance Specialist and Founder of Violeta Finance, that is creating opportunities for some existing property owners.
“With lower application volumes, many banks have reduced their interest rates. Some are even offering up to $3,000 cashback for refinancing, subject to eligibility and terms and conditions. For investors who haven’t reviewed their lending recently, it’s worth finding out how their current loan compares with what’s available now.”
A lower interest rate isn’t automatically a reason to refinance. Exit costs, application fees, loan features, tax considerations and the structure of your lending all need to be considered.
But when you’re carrying a sizeable investment loan, even a relatively small rate difference can have a meaningful impact on annual holding costs.
Look beyond the interest rate
Finance is only one half of an investment property’s performance.
If you’ve owned your property for several years, ask yourself:
Is the rent still at market level?
Rental markets change quickly. A regular rental appraisal can identify whether your property’s return remains aligned with comparable homes in the area.
Has the property built significant equity?
For Peninsula owners who purchased several years ago, increased equity may change your borrowing position and potentially provide options for refinancing, renovating or making another investment.
Are your expenses working against you?
Interest, insurance, maintenance, management fees and other holding costs can gradually erode your return. Reviewing these collectively can give you a much clearer picture than simply looking at the weekly rent.
Does the property still fit your strategy?
A good investment five or ten years ago isn’t automatically the right investment to hold for the next ten. Equally, selling purely because the market has become more complicated may mean giving up a quality asset without considering the alternatives.
The important part is having current information before making the decision.
Could changing investor behaviour create buying opportunities?
The changes may also create an interesting environment for investors looking to grow their portfolios.
The RBA has already noted a sharp decline in new investor housing loan commitments and softer conditions in the established housing market.
At the same time, the new tax settings are designed to encourage future investment towards newly built property.
For investors who understand the new rules and have their finance organised, a market with fewer competing investors could present opportunities – whether that’s considering new property that benefits from the future tax treatment or carefully assessing established property on its underlying investment fundamentals.
The right opportunity will be different for every investor, which makes good advice increasingly important.
Start with a health check
You don’t necessarily need to be planning to sell, refinance or purchase another property to review where you stand.
Carl is currently offering complimentary home loan health checks for Scenic Property clients and landlords.
He can review existing home or investment lending, discuss refinancing or restructuring options and help determine whether the rates and products you’re currently using remain competitive.
Book a complimentary home or investment loan health check with Carl Violeta at Violeta Finance.
And if it has been a while since your investment property itself was reviewed, the Scenic Property team can provide an updated rental appraisal and discuss current rental demand, property presentation and opportunities to improve your return.
In a changing market, doing nothing can sometimes be the right decision – but it’s better when that’s an informed decision.
Thinking about your investment property?
Speak with the Scenic Property team about a complimentary rental appraisal and property review, or connect with Carl at Violeta Finance to review the finance behind it.
This information is general in nature and does not constitute financial, taxation or investment advice. Individual circumstances vary. You should seek appropriate professional advice before making financial or investment decisions. Lending criteria, eligibility requirements, fees, rates and terms and conditions apply.
