It’s not surprising that for several years now, renter and investor issues have been a popular conversation at dinner tables and get togethers. After all, one in five Australians now own an investment property, according to the PropTrack-Westpac Investor Report 2026.
These investment buyers were very active in 2025, with the number of new investor loans increasing by about two-thirds from its early 2023 low point, based on Australian Bureau of Statistics (ABS) data.
And, while rent growth has slowed since 2022 and 2023, the PropTrack-Westpac report noted that in the final few months of 2025, 93 per cent of investor resales returned a profit to their vendors – the highest level in at least a decade.
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It’s a good time to be a property investor.
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This trend was particularly notable in Brisbane, Adelaide and Perth.
Westpac managing director for mortgages, James Hutton, explained the overall rental situation was based on investors adapting to more stable conditions and becoming disciplined and confident, even as challenges like tight rental conditions continued.
Another report highlighted that national rental listings are around 18 per cent below their five-year average, with this shortage especially prominent in Sydney and Melbourne.
As a result, tenants are now spending a record 33.1 per cent of their pre-tax income on rent. This is up from 26.2 per cent in September 2020 and comes despite a moderation in rent growth throughout most of 2024 and into mid-2025.
HOW TO SUCCEED AS A PROPERTY INVESTOR
Despite these facts and figures, the tips on how best to succeed as a landlord remain the same.
First and foremost, buy objectively.
Unlike buying a home you will live in, including details that you really want, your basis for buying an investment property should be how to attract renters.
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Look for your investment property in an area you know well.
I always suggest to investors that they look for a property in an area they know well and that is close to quality infrastructure and amenities such as transport links, shops, schools, and health and medical hubs.
Houses will generally return higher capital growth than apartments in the long term, due to their land value.
However, as the PropTrack Westpac Investor Report 2026 points out, half of all rental properties are apartments or semi-detached homes. This low-maintenance option might also suit you and your budget better than a house.
Whichever property type you choose to purchase, always aim to buy the best quality property possible and ensure you research the market thoroughly before purchasing, including talking to your local sales agent.
Saturday auction at 65 Harrow Road in Stanmore, with real estate identity John McGrath acting as auctioneer Picture: David Swift.
Most importantly, don’t be frightened by the current statistics into selling your investment property after only a year or two.
As with any investment, and all real estate, property investments will return the best value to their owners over time.
Capital growth alone takes awhile to appreciate, plus a long-term investment will allow you to ride out any market corrections and ideally, enjoy consistent, strong value.
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