The number of property investors exiting the property market is increasing. A combination of factors is contributing to this trend, including:
- Massive interest rate increases over the last 12 months
- Onerous tenancy laws
- Increase in property land taxes
- Low rental returns (%)
- Holding cost inflation such as insurances, rates, etc
- Negative sentiment towards investors
Surveys are showing a large increase in investors considering selling, with 27% of investors contemplating selling up (last quarter only 18% were considering selling).
The rental market is subject to the same laws of supply and demand like every part of the economy. Supply issues have been accumulating over time, while demand is rapidly growing through record immigration without any housing strategy linked to our immigration policy.
In any market, there are opportunities. A surge in investment property sales will provide opportunity for home buyers to enter the market. New investors will also find opportunities that suit their individual financial circumstances, and long term goals.
