New vs Established Investment Property in 2026: Why the Tax Rules Now Favour New Builds
From 1 July 2027, two investors paying the same price for the same rent can face very different tax bills, simply because one dwelling is new.
Unlocking Regional Investment Potential
A Surge in Migration Trends for Australian Property Investors
The Regional Movers Index (RMI) September 2024 report highlights a fascinating shift in Australia’s internal migration patterns, presenting an enticing opportunity for property investors. With a growing trend of individuals and families moving from capital cities to regional areas, the regional property market is brimming with potential.
Regional Migration Trends: A Closer Look
The RMI reveals a consistent rise in capital-to-regional migration, with 35.6% more people moving from cities to regional areas compared to flows in the opposite direction. This movement underscores a significant preference for regional living, driven by factors such as affordability, lifestyle changes, and evolving work arrangements.
Investment Strategies for Regional Properties
Property investors can harness these migration trends by focusing on the burgeoning regional markets. Here are some key strategies:
1. Explore High-Yield Properties
Regions experiencing a surge in migration often see higher rental demand, driving rental yields. Areas like the Sunshine Coast and Greater Geelong are perfect examples of high-yield investment opportunities.
2. Dual Occupancy and Co-Living Properties
Dual occupancy properties and co-living homes cater to the growing need for affordable and flexible housing. These property types not only offer higher rental returns but also ensure stable occupancy rates.
3. SMSF-Friendly Investments
For those leveraging their Self-Managed Super Funds (SMSF), regional properties provide an excellent opportunity to diversify portfolios. With lower entry prices and high growth potential, these investments align well with long-term financial goals.
4. Capital Growth Potential
Migration trends often lead to increased property values over time. Investors targeting high-growth areas such as regional Victoria or Queensland can reap substantial capital appreciation.
5. Diversify with Regional Opportunities
Emerging markets like Ballina, Maitland, and Wangaratta offer unique opportunities for early-stage investments. Diversifying across regions minimizes risk while maximizing growth potential.
Key Hotspots to Watch
The report highlights several standout regions for property investment:
Opportunities in the Australian Property Market
As migration patterns continue to evolve, the regional property market presents unparalleled opportunities for savvy investors. The combination of high rental demand, increasing property values, and lifestyle-driven migration trends creates a fertile ground for profitable investments.
To make the most of these opportunities, investors should consider:
The Regional Movers Index September 2024 report underscores the immense potential in Australia’s regional property market. From high-yield properties to SMSF-friendly investments, the opportunities are vast and varied. By aligning strategies with migration trends, investors can secure lucrative returns while contributing to the growth and vibrancy of regional communities.
Ready to explore the best investment opportunities across Australia? Visit www.ausinvestmentproperties.com.au to discover our curated selection of high-yield, dual occupancy, and SMSF-friendly properties tailored for savvy investors. Unlock your property investment potential today!
Source: Data-The Regional Movers Index (RMI) September 2024 report Photo-@nicksarvarii
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The Australian Property Market in 2025From 1 July 2027, two investors paying the same price for the same rent can face very different tax bills, simply because one dwelling is new.
TL;DR The May 2026 Federal Budget abolished negative gearing for established properties purchased after 12 May 2026 and will replace the 50 per cent CGT discount with indexation from 1 July 2027. New builds are exempt and keep both tax benefits. With ABS data showing rents still rising and housing the biggest driver of inflation, high yield new builds such as co-living, dual occupancy and duplex homes now offer stronger cash flow and better tax treatment.
TL;DR Lone-person households are Australia’s fastest growing household type and make up roughly a quarter of the nation’s three million renting households, yet most rental stock is built for families. Purpose-built co-living, rooming house and studio accommodation adds multiple self-contained dwellings to a single block, delivers strong yields and targets a tenant pool that is growing every year. The investors who win in this space will be the ones who prioritise quality, compliance and location.
This report provides a quarterly review of pricing across current market listings analysed by Aus Investment Properties. It is designed as an investor-grade market snapshot of build pricing, land pricing and package pricing across residential investment product types and key states. Unless otherwise stated, all standard residential analysis excludes Specialist Disability Accommodation (SDA), which is reported separately because specification, compliance settings and package structure differ materially from non-SDA stock.
Higher borrowing costs are changing the market, but smart Australian investors can still find strong opportunities TL;DR: The latest RBA rate rise means property investors in Australia need to be more selective in 2026. Higher interest rates can reduce borrowing power and place more pressure on cash flow, but they do not eliminate good investment opportunities. Investors who focus on strong locations, realistic numbers and sustainable rental demand can still make smart property decisions in the current market.
Australian property market forecasts for 2026 are generally positive, with most analysts expecting moderate price growth across the country. For property investors, however, headline growth figures tell only part of the story. The real question is not whether prices will rise, but where investment property fundamentals still stack up under tighter borrowing conditions and higher holding costs.
Capital Growth 12 months, measures the increase in a property’s value over the previous 12 months, indicating how much the investment has appreciated in that timeframe.
Capital Growth 10-year annualised, reflects the average annual increase in a property’s value over the last decade, smoothing out short-term fluctuations to show long-term appreciation trends.
Vacancy Rate, indicates the percentage of properties that are currently unoccupied in that postcode, It’s a key indicator for investors to assess the rental demand.