As regional hotspots get hotter, well-equipped brokers stand to gain an edge
Property investors are dominating the deal flow right now.
In New South Wales, investor-side lending growth outpaced the owner-occupier segment by a factor of six-to-one in the 12 months to June 2025.
On a national level, while homebuyer loan numbers remain 19.5% below mid-2022 levels, investor loans are down just 2.9%, according to an analysis of Australian Bureau of Statistics (ABS) data.
In the June 2025 quarter, investor loans comprised over 37% of new loan commitments. Jump back to 20219, that figure was less than 29%.
Alongside NSW, Queensland has emerged as an investor hotspot, particularly in outer metro areas and smaller cities where the price of entry is lower.
Many of these investor purchases are first-home buyers using the popular rentvesting strategy to fit their lifestyle choices while building equity.
According to lenders mortgage insurance (LMI) provider Helia, three interest rate cuts from the Reserve Bank of Australia (RBA) has “led to a lift in property investor appetite (and) increased investor confidence.
Expanded lending criteria has “eased serviceability calculations, giving investors the ability to borrow larger amounts and consider higher-value properties”, while renewed demand in growth markets like Brisbane, Perth and Adelaide is being driven by “relatively attractive rental yields and solid capital growth potential”.
Helia’s 2024 Home Buyer Sentiment Report highlighted that 63% of home buyers pursuing an investment property see it as a strong long-term strategy while 57% cite the appeal of the rental income.
“These motivations are consistent across both first-home buyers and seasoned investors, reflecting an increasingly opportunistic mindset driven by urgency and supported by lower borrowing costs,” Helia said.
The good times are expected to continue for property investors, as long as supply remains limited and borrowing capacity improves.
As Helia’s chief commercial officer, Greg McAweeney, told MPA: "We’re seeing a clear pattern where improved borrowing power is translating directly into heightened home buyer activity.
“This dynamic not only drives competition but also underscores the value of tools like LMI to help home buyers act sooner rather than later."
Further central bank monetary easing wouldn't hurt, although a September interest ratre cut looks of the table.
Demand-side incentives adding fuel to house price fire
Increasingly generous government incentives, such as the 5% Home Guarantee Scheme, are expected to drive house prices even higher, leading to rising concern that government intervention is distorting the market and potentially pricing lower income earners out even further.
In Helia’s view, schemes like the HGS are simply benefitting people who already had plans to purchase, “meaning the net effect is often to bring forward demand rather than expand home ownership – amplifying competition and raising prices”.
"In essence, the property market is being pulled forward rather than expanded," McAweeney said. "For brokers and home buyers alike, understanding these nuances is critical to making informed decisions in a fast-moving environment."
Helia has been vocally critical of Labor’s HGS scheme, although as the country’s largest LMI provider, the ASX-listed group has a lot to lose from the scheme, since it allows first-home buyers to avoid costly LMI entirely.
Nonetheless, these comments hold weight.
Lower rates and demand-side incentives make a perfect storm of rising house prices in the near term.
While this improves opportunities for some home buyers, “it risks further disadvantaging lower-income households who may be priced out as affordability pressures persist”, Helia said.
As the market becomes more complex, the role of brokers as trusted advisers is more important than ever before, especially when nearly 80% of residential mortgage deal flow comes from brokers.
So, what makes a good investment property broker?
In Helia’s view, there are a three common traits shared among successful brokers in the investor space:
- Education-led guidance and support: brokers invest time in educating clients on the full range of strategies, including rentvesting, leveraging potential tax benefits, and how strategies like Lenders Mortgage Insurance (LMI) can accelerate property investment opportunities. By explaining both short-term and long-term implications, brokers help clients make informed, confident decisions.
- Data-driven approach: They rely on market insights, analysis on rental yields, growth suburbs, vacancy trends, and affordability metrics to identify potential investment opportunities with strong fundamentals. This data-backed guidance ensures clients are positioned in property markets with both growth potential and sustainable returns.
- Long-term client relationships: They treat each client conversation as the beginning of a longer journey, supporting clients in building scalable property portfolios over time. This includes reviewing portfolio performance and refinancing strategies.
